What happened
Volta (VLTA), a company specializing in electric vehicle (EV) charging infrastructure, reported second-quarter 2022 earnings Thursday after the market closed that drove past analysts' top-line estimate. On Friday, investors are voicing their approval.
As of 3:01 p.m. ET, shares of Volta are up 12.6%.
So what
Booking a 123% year-over-year increase, Volta reported Q2 2022 revenue of $15.3 million, surpassing analysts' estimates that the company would achieve sales of $13.5 million. While the company missed analysts' bottom-line estimate by $0.01, reporting earnings per share of negative $0.22, the company narrowed its loss considerably compared to the same period last year. In Q2 2021, Volta reported a loss per share of $1.09.
It isn't only the company's recent performance that's stoking investors' excitement today. Management's auspicious view of how the company will perform in the third quarter as well as the remainder of 2022 is also a factor. Volta projects Q3 2022 revenue of $17 million to $18 million. Should it achieve the midpoint of this guidance, it will be a 106% increase over the $8.5 million that it reported in sales for Q3 2021. Volta foresees significant growth as in 2022 well. The company is guiding for sales of $70 million to $80 million -- notably higher than the $32.3 million in sales it generated in 2021.
Now what
Volta reported strong sales figures for the second quarter, but it's important for investors who have this EV charging stock on their watch lists to recognize that the company's not out of the woods yet. In May, Volta raised concerns about its liquidity and ability to grow due its excessive cash use. With Volta's cash position falling to $105.3 million from the $262.3 million that it had at the end of 2021, investors should keep their distance from the stock until management addresses the company's liquidity.
