Shares of electric-vehicle (EV) charging-infrastructure company Blink Charging (NASDAQ:BLNK) fell as much as 10.4% in trading Friday after reporting third-quarter 2020 earnings. Shares of this growth stock closed the week down 7.1% for the day.
Third-quarter revenue was up 18% from a year ago to $0.9 million, and net loss was $3.9 million, or $0.12 per share. This fell well below the $1.8 million in revenue and $0.09 loss per share that analysts expected.
Management said that product sales increased by 74% to $0.6 million as 668 EV charging stations were sold, deployed, or acquired. But the slowdown in business activity across the U.S. has slowed the company's growth. Third-quarter growth looks particularly weak when compared to 84% revenue growth for the first nine months of 2020.
There are going to be ups and downs in a new business like EV charging, and this is one of the down quarters. But the adoption of electric vehicles is picking up. When more people return to work, I think demand will pick up as well. For long-term investors, this is just a buying opportunity, and I don't see any major reason to change your investment thesis after one quarter that fell short of Wall Street's guess at earnings.