What happened
Electric vehicle (EV) charging company EVgo (EVGO 5.85%) surprised investors with its second-quarter report last night, and the stock is soaring as a result. Shares spiked as much as 40% Thursday morning before settling to a gain of 22.1% as of 12:25 p.m. ET.
So what
The stock soared after the company reported a loss of $0.08 per share in the second quarter from revenue of $50.6 million. Wall Street was expecting a loss of $0.26 from sales of just $29.5 million. That sales figure represented growth of 457% compared to last year's second quarter.
The investor reaction brought EVgo's stock return into the green for the year.
Now what
EVgo said its growth was fueled by charging revenue as well as from charging equipment delivered for projects under its partnerships with truck stop operator Pilot Flying J and General Motors. Pilot is 80% owned by Warren Buffett's Berkshire Hathaway.
The quarterly results were also a significant sequential improvement from the first quarter. In that period the company reported a higher loss on just half the revenue. The strong results prompted EVgo to increase the lower end of its projected 2023 revenue range from $105 million to $120 million.
Another positive piece of news for investors was that EVgo's cash flow from operations was negative by just $3.2 million for the quarterly period. If the company continues to progress at this rate, it could be generating positive cash flow as soon as the third quarter. That has investors jumping into the stock today.
