Blink Charging
stock surged Wednesday after the electric-vehicle charging equipment provider’s preliminary sales results crushed expectations and broke company records.
Blink provided preliminary revenue results for the final quarter of 2023 and the year overall Wednesday. The company’s update also offered some relief for weary electric-vehicle investors who have been dealing with losses amid rising interest rates and slowing demand growth for battery-powered cars.
The company said its fourth-quarter sales should exceed $42 million, a company record. The number beats Wall Street estimates for $34 million by a whopping 24% and marks year-over-year sales growth of about 85%.
For the full year 2023, Blink said revenue should surpass $140 million, outpacing its previous guidance for between $128 million and $133 million and another company record.
Blink stock shot up almost 18% in premarket trading at $3.15 apiece.
S&P 500
and
Nasdaq Composite
futures are up 0.5% and 0.7%, respectively.
Higher interest rates and demand growth had investors feeling much worse about the EV sector. Small-capitalization stocks in particular have been pummeled.
Coming into Wednesday trading, Blink shares were down almost 75% over the past 12 months.
EVgo
and
ChargePoint
stocks were down about 64% and 83%, respectively, over the same span.
Higher rates make it harder for small companies that aren’t yet profitable to raise money. Blink, EVgo, and ChargePoint aren’t expected to be profitable this year.
While EV demand is decelerating, it’s still growing. U.S. battery electric vehicle, or BEV, sales grew 46% year over year in 2023. Automotive forecasters expect roughly 40% growth in 2024. Chinese BEV sales grew about 20%, according to data tracked by Citi analyst Jeff Chung. He expects 17% growth in 2024.
While it’s still been a tough stretch for the sector, Blink’s preliminary results offer a glimmer of hope.
“We are excited about our record-breaking fourth-quarter and full-year 2023 revenue growth,” said CEO Brendan Jones in a news release. “We saw strong demand for both our equipment and services.”
EVgo and ChargePoint shares both added about 5% in premarket trading Wednesday.
Write to Al Root at [email protected]
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