Providing a wider loss than expected in today’s risk-off environment will not cut the mustard these days even when negated by outsized top-line growth. As such, Blink Charging (BLNK) shares drifted south following the EV charging station specialist’s latest financial statement.
The company’s revenue increased by 224% year-over-year to reach $7.9 million, in turn beating the Street’s call by $1.7 million.
Company-owned charging stations generated revenue of $1.3 million in the quarter, vs. the $0.2 million delivered in 4Q20 mostly on account of the business expanding in Europe following the Blue Corner acquisition. Yet most of the growth can be put to down to Product sales, which reached $5.7 million compared to 4Q20’s $1.8 million. Additionally, 3,733 charging stations were either contracted or sold in the quarter, a 253% year-over-year uptick. With the Blue Corner acquisition now fully integrated, Blink has more than 32,000 charging stations located in the U.S. and Europe.
However, the company’s expansion has continued while it has also been hiring personnel for key roles, and as such, the losses have widened – from a net loss of of $7.9 million in 4Q20 to $19.0 million in 4Q21. The result was a miss on the bottom-line as EPS of -$0.45 came in $0.06 worse than the consensus estimate.
The company did not provide guidance for 2022, and while the global supply-chain issues have not been felt too badly at Blink so far, H.C. Wainwright’s Sameer Joshi believe such headwinds could “potentially impact product revenues during the next several quarters.” Nevertheless, Joshi remains fully on board, noting that Blink stands to benefit from the EV secular trend.
“We continue to believe that the company has positioned itself to be a key player in the EV charging market. The company has received $26.5M in grants from various governmental agencies for products to be deployed over the next several years,” the 5-star analyst said. “In our opinion, Blink is positioned to enjoy significant upside resulting from the $7.5B allocated to EV network build-out in the U.S. as part of the infrastructure bill passed late last year.”
To this end, Joshi rates BLNK shares a Buy along with a $50 price target. The implication for investors? Upside of 136%. (To watch Joshi’s track record, click here)
Looking at the consensus breakdown, 2 Buys and 1 Hold add up to a Moderate Buy analyst consensus. At $39.33, the average price target implies nearly 86% upside potential. (See Blink stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
