Blink Charging (BLNK) Suffers Q4 Loss, Revenue Improves Year-over-Year

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flashing charging BLNK reported a fourth-quarter fiscal 2021 non-GAAP loss of 45 cents per share, narrower than Zacks’ consensus estimate of a loss of 39 cents. However, the figure was higher than the loss of 24 cents reported in the prior year quarter.

Blink Charging reported revenue of $7.9 million in the quarter, which beat Zacks’ consensus estimate of 32.79%. Revenue improved by $5.5 million from the $2.45 million reported in the prior year quarter.

In the quarter under review, Blink Charging’s revenues were primarily driven by increased demand for its global electric vehicle charging infrastructure and higher service revenues.

The positive momentum can be attributed to Blink continuing to win multi-year contracts from owners in high-density areas throughout fiscal 2021. In the fourth quarter, the company contracted or sold 3,733 commercial chargers and residential and increased the number of Blink commercial-only charging stations by 253% over the prior year quarter.

Shares of Blink Charging have fallen 5.2% year-to-date, versus industry Zacks Electronics – Miscellaneous Services’ return of 3.7%. Meanwhile, the Zacks Computer & Technology sector fell 15.7%.

Blink Charging Co. Price, Consensus and EPS Surprise

Blink Charging Co. price-consensus-eps-surprise-chart | Quote from Blink Charging Co.

Quarter in detail

During the reported quarter, Blink Charging’s total revenue was aided by both the product revenue and service revenue segments.

Fourth quarter product sales were $5.7 million, up a staggering 214% from the prior year quarter. Sales in this segment grew as demand for the company’s commercial charters, DC fast chargers and home chargers increased. Product revenues were positively impacted by the acquisition of Blue Corner.

Services revenue soared 271% year-over-year to $1.8 million. The growth in services revenue can primarily be attributed to higher usage of the company’s chargers, the increase in the number of chargers in the Blink network, and the positive traction of the Blink Mobility Rideshare program.

Blink Charging’s gross profit in the reported quarter was $1.4 million, up 223%, driven by strong performance in the product and service revenue segments.

However, higher operating expenses in the fourth quarter had a significant impact on the company’s earnings growth. Operating expenses in the fourth quarter were $20.5 million, up 147% year over year.

As a result, adjusted EBITDA for the fourth quarter was a loss of $9.1 million, compared to a loss of $7.1 million for the same period last year. However, the adjusted EBITDA margin improved by 174 basis points in the fourth quarter of 2021 compared to the fourth quarter of 2020.

Balance sheet

As of December 31, 2021, cash and marketable securities totaled $174.8 million, compared to $186.7 million as of September 30, 2021.

Zacks Ranking and Stocks to Consider

Blink Charging currently has a Zacks Rank #3 (Hold).

Some top-ranked stocks in the IT and technology sector are Broadcom AVGO, Advanced micro-systems AMD and Avnet AVT.

Currently, Broadcom carries a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here. The long-term earnings growth rate is 14.52%.

Broadcom shares have fallen 5.2% year-to-date, compared to declines of 16.1% and 15.7% in Zacks electronics and semiconductors and the sector computing and technology, respectively.

AMD’s long-term earnings growth rate, a Zacks Rank #1 stock, is 29.08%.

AMD shares have fallen 26% since the start of the year, compared to declines of 16.1% and 15.7% in the electronics and semiconductors sector and the computer sector and technology, respectively.

Avnet has a Zacks #1 rank and a long-term earnings growth rate of 28.80%.

Avnet’s shares fell 3%, compared to the industry’s 10.7% drop in Zacks Electronics – Parts Distribution.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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