Blink Charging Stock Falls As Losses Deepen While Sales Soar

Blink Charging (BLNK) reported reported mixed Q4 results after winning key grants that showed municipalities, cities and states are speeding up on infrastructure to support EV adoption. Blink Charging stock fell.


Blink Charging Earnings

Estimates: Wall Street expected a net loss of 11 cents a share, flat vs. a year ago, as sales leap 141% to $1.69 million, according to Zacks Investment Research. The company has a history of losses and sales growth has been volatile. The company missed earnings views the last three quarters in a row.

Results: Loss of 24 cents a share on revenue of $2.45 million, up 250%. Product sales shot up 1,100% to $1.82 million. Network fee revenue jumped 66.5% to $117,691.

But charging service revenue from company-owned charging stations tumbled 52% to $203,012, related primarily to the decrease in EV charging due to the COVID-19 pandemic.

“As EV adoption continues to grow and utilization of chargers increases, we expect Blink-owned units will represent a valuable recurring revenue stream for many years to come,” said founder and CEO Michael Farkas.

Blink taps several revenue streams. It charges EV drivers to power their cars; sells EV charging hardware; provides network connectivity; and processes payments for its property partners and from advertisers.

The Blink EV charging network spans more than 23,000 charging stations. Rival ChargePoint (CHPT) runs 132,000 charging ports globally and reported widening losses in its first results since going public.

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Blink Charging Stock

Shares fell 3.9% late after closing up 0.4% at 35.22 in Thursday’s stock market trading, well under the 50-day line after a sharp and broad sell-off for EV stocks. Blink Charging stock has lost almost half its value since peaking in January.

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Among other EV charging plays, ChargePoint stock fell 2.3%. Blank-check company Climate Change Crisis Real Impact I Acquisition (CLII), which is taking charging network operator EVgo public, rallied 2.4%. In Q2, EVgo stock is expected to debut under the ticker EVGO on the New York Stock Exchange.

Blink Charging boasts a best-possible A+ Accumulation/Distribution Rating, a sign that big institutions were heavy buyers over the past 13 weeks. More than 40 funds owned Blink Charging stock as of December. Its overall Composite Rating is a dull 70 out of 99.

On March 11, Blink Charging stock surged 17% after the company announced a grant from the Ohio Environmental Protection Agency.

Blink will install 144 fast-charging stations at 32 sites across the state, including clinics and hotels. Earlier in February, Vermont awarded a grant for 11 Blink fast-charger deployments.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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