EVgo Inc. (EVGO stock) - Could Getting a new award be beneficial

Can EVgo Inc (NYSE: EVGO), an EV charging solutions provider, charge themselves to be in the greens? Since its formation in 2010, the Los Angeles, California-based company could not have a positive net income. The company operates in a rapidly growing industry with a CAGR of 37.5% from 2021 to 2028. Facilitating 900 fast and 800 level 2 charging stations across 34 US states, and are planning to install 2000 new fast chargers by 2025.

EVgo selected for Award by CEC

EVgo Inc has been selected by the California Energy Commission for a proposed $6.6 million award in the California Electric Vehicle Infrastructure Project (CALeVIP) 2.0 program. The funding is for deploying fast-charging infrastructure in eastern California under the Golden State Priority Project (GSPP).

The project provides concessions for installing DC fast chargers with a capacity of 150kW minimum. This rebate would allow EVgo to deploy 350kW chargers in each location supported by this program. This initiative aligns with the company’s vision of providing a best-in-class charging experience.

EVgo Inc. & its Financials

EVgo released their Q4 2022, which looks promising; EVGO stock is up by 25%. The jump can be attributed to their partnership with Pilot Flying J and General Motors to set up a nationwide charging network. The supposed network will be installed and operated by EVgo.

The Q4 has been subpar for EVgo, with a hike of 282% in their revenue, which is $7 million more than what was estimated. They added 59,000 new customers, taking their total to 553,000. This increase has increased their throughput by 76.6%; they added 180 stalls in the quarter, bringing their total to 2800. The revenue could climb even more if they add 600 to 1,200 more stalls.

EVgo Inc. (EVGO) – The number game

When writing, the EVgo Inc. (NYSE: EVGO) stock was changing hands at $7.20, dropping 7.57%; previous close and open were at $7.79 and $7.89, respectively. The fifty-two-week change was a drop of 46.51%. With an average volume of 2.73 million shares, the company’s market cap was $1.925 billion. The price is targeted at $11.06 with an upside of 53.5%.

By December 2022 data, Revenue climbed by 283.52% from $27.30 million, while revenue per share was $0.79, and the quarterly revenue growth was 283.50%. Operating expenses were down by 50.37% from $47.43 million; net income jumped by 63.14% from negative 4.44 million, and the net profit margin jumped by 90.39% from negative $16.25.

Earnings Per Share (EPS) stumbled by 243.21% from negative $0.22, and EBITDA dropped by 47.20% from negative $33.00 million. Returns on assets and equity suffered by 12.66% and 19.23%, respectively. The latest earnings were reported on March 30, 2023, where revenue was estimated to be $19.918 million but reported to be $27.228 million, with a surprise of $7.31 million and a growth of 36.70%.

EVgo Inc. (EVGO) – The Candle Exploration

The positive earnings caused a gap in the EVGO stock price, hinting at positive momentum. The hypothesis is supported by upward bending EMA and positive cross-over in the MACD. However, price action usually retraces such gaps, but its timing is not certain.

For now, the EVGO stock can be seen moving upward and could touch the supply zone. However, if the sellers become active, it could retest the gap and bounce off S1. A clear breakthrough of S1 and drop below S2 depends on multiple variables.

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