Shares of EVgo (EVGO -0.80%) soared again Wednesday, jumping 10% as of 12:10 p.m. EST after rallying 16.7% earlier in the day.
The electric vehicle (EV) charging stock has been on an unstoppable ride this week, having gained more than 70% already. Investors are reacting to solid third-quarter numbers and a strong outlook from the company.
Here's how EVgo fared in the third quarter:
- Revenue: Up 73% year over year to $6.2 million.
- Net income: $6.1 million versus a year-ago loss.
- Earnings per share (EPS): $0.09 per share versus a loss in the year-ago quarter.
- Customer account additions: 36,368.
- New charger stalls: 47, bringing total stalls in operation to 1,595.
If EVgo's surprising profit stumped you, here's what happened: The company suffered an operating loss of $25.9 million, and its profits were entirely because of other income such as changes in the fair value of stock warrant liabilities that has nothing to do with the company's operational performance.
That said, EVgo's third-quarter numbers prove it is growing: Its total customer accounts topped 310,000 by the end of the quarter. Just in September, it hit the 300,000 mark. Also, network throughput grew 31% and revenue rose 29% sequentially as the adoption of EVs picked up and more drivers used EVgo's fast-charging services.
What's really got investors excited today is EVgo's upgraded outlook. For 2021, it expects:
- Revenue worth $20 million to $22 million, versus $20 million projected earlier.
- Network throughput of 24 to 26 gigawatt hours.
- Total installations of 280 to 320 new charging stalls.
Additionally, EVgo expects 220 to 260 stalls will be under construction by the end of 2021. Just yesterday, it announced an extension of partnerships with General Motors and Uber Technologies. The company also ended the third quarter with a strong cash balance of $521 million.
Investors expect strong growth for the EV charging company now that President Joe Biden's $1.2 trillion infrastructure bill, which proposes $7.5 billion spending on EV charging networks, is about to be signed into law.