On Tuesday, Benchmark maintained its Buy rating and $5.00 stock price target for Blink Charging Co. (NASDAQ: NASDAQ:BLNK), following the company's third-quarter earnings report. Despite Blink Charging's revenue falling short of expectations, the analyst firm reaffirms its positive stance on the stock's future performance.
Blink Charging reported a third-quarter revenue of $25 million, which did not meet the anticipated figures of $36 million projected by Benchmark and the $35 million consensus. The company's earnings per share (EPS) were $(0.18), slightly better than Benchmark's estimate of $(0.19) but did not reach the consensus estimate of $(0.16), after accounting for a $69 million non-cash goodwill impairment expense.
The company experienced weaker product sales due to slower demand growth than expected. This has temporarily affected sales, but Benchmark anticipates a rebound in Blink's product sales that will align with the projected increase in overall electric vehicle (EV) sales in 2025. Despite the lower sales figures, Blink Charging managed to improve its gross margin to 36% in the third quarter, up from 29% in the same quarter the previous year.
Blink Charging also revised its annual guidance, lowering its revenue forecast to a range of $125 million to $135 million from the previously expected $145 million to $155 million. The company is aiming for a 33% gross margin for the full year and expects to achieve adjusted EBITDA positivity in 2025.
Benchmark has updated its financial model for Blink Charging to reflect the latest performance data and maintains its Buy rating. The firm's outlook remains optimistic as Blink Charging continues to streamline its business model and prepare for future growth in the EV market.
In other recent news, Blink Charging Co. reported a mixed financial performance in its third-quarter 2024 earnings call. The company's total revenue was $25.2 million, a notable decrease from $43.4 million in the same quarter the previous year, while service revenue accounted for $8.8 million.
Despite this, Blink achieved a 36% gross margin, surpassing its full-year target of 33%, and made significant strides in expanding its charging infrastructure. The company also adjusted its full-year revenue guidance to between $125 million and $135 million.
In terms of growth, Blink reported a 70% sequential increase in charger deployment, totaling 6,978 units globally. The number of owned chargers also saw a 28% year-over-year increase, reaching 6,442 units. The company anticipates positive adjusted EBITDA in the second half of 2025.
Recent developments also include the company's strategic partnerships and grants aimed at supporting infrastructure growth. These initiatives, along with a planned 14% reduction in global personnel by Q1 2025 for annual savings of $9 million, are part of Blink's efforts to control costs and improve operational efficiencies.
However, it is important to note that the company reported a loss of $14 million in adjusted EBITDA and non-cash impairment charges of $69.1 million, affecting its financial figures.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Blink Charging's financial situation and market performance. The company's market capitalization stands at $185.11 million, reflecting its current valuation in the market. Despite the challenges highlighted in the earnings report, Blink Charging's revenue for the last twelve months as of Q3 2024 reached $138.73 million, with a growth rate of 15.13% over the same period.
InvestingPro Tips reveal that Blink Charging holds more cash than debt on its balance sheet, which could provide some financial flexibility as the company navigates through its current challenges. However, the company is also quickly burning through cash, which aligns with the reported lower sales and revised revenue guidance.
The stock's recent performance has been volatile, with InvestingPro data showing a significant 14.88% decline in the past week and a 35.11% drop over the last six months. This volatility is consistent with the InvestingPro Tip indicating that stock price movements for Blink Charging are quite volatile.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Blink Charging, providing a deeper understanding of the company's financial health and market position.
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