EVgo smashes sales estimates and forecasts are in order. The stock goes up.

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Solid results can be good enough for early-stage growth stocks in this market.

Electric vehicle charging company

EVgo

(Ticker: EVGO) reported better than expected fourth quarter sales. Additionally, the expected sales range for 2023 is within Wall Street forecasts. The report looked solid and was enough to send EVgo shares higher in early trade.

Fourth-quarter revenue of $27.3 million and negative earnings before interest, taxes, depreciation and amortization, or Ebitda, of $20.1 million were better than guidance. Wall Street was targeting about $20 million in revenue and about -$24 million in Ebitda.

Looking ahead, EVgo expects revenue of between $105 million and $150 million in 2023. Wall Street is forecasting about $144 million. The company expects Ebitda to be around $69 million in the red for the current year, about $6 million better than analysts’ forecasts.

“In 2022, EVgo achieved record sales, reflecting the continued growth of EVgo’s ultra-fast DC charging network,” CEO Cathy Zoi said in a press release. “We expect 2023 to be another outstanding year for EVgo as we expand our network and revenue base and deliver financial results that demonstrate discipline, agility and innovation in serving the fast-growing EV sector.”

EVgo stock is up almost 7% in premarket trading to $6.15 per share.

S&P500
And

Nasdaq Composite
Futures rose 0.6% and 0.5% respectively.

EVgo closed the quarter with 2,800 fast charging stations in operation or under construction about 1,900 Late 2021. Grid charging demand in the fourth quarter was 14.4 gigawatt hours, up more than 75% from 8.2 gigawatt hours in the fourth quarter of 2022.

The company added approximately 59,000 new customer accounts in the fourth quarter and approximately 224,000 throughout 2022. The total number of customer accounts at the end of 2022 was approximately 553,000.

EVgo hosts a telephone conference at 11 a.m. Eastern to discuss the results. Investors and analysts will be eager to learn more about charging equipment demand as EV sales pick up in the US.

As of Thursday trading, EVgo stock is up about 29% this year, but the stock is down about 53% over the past 12 months. From its all-time high of $24.34 hit in January 2021, shares are down about 75%.

Rising interest rates and a slowing economy have dampened some investors’ enthusiasm for start-up stocks that aren’t yielding returns. Wall Street expects EVgo to be consistently profitable between 2025 and 2026 when annual sales hit about $500 million.

Write to Al Root at allen.root@dowjones.com