Innoviz Technologies Ltd. (INVZ) Reports Q3 Loss, Misses Revenue Estimates

Wall Street is speculating on the effects of possible Donald Trump policy changes when he takes office in January 2025. JPMorgan analyst Virgina Martin Heriz weighs in on the potential impacts of a second Trump presidency on sustainable investing.

Onshoring: Heriz sees a second Trump administration modifying the Inflation Reduction Act (IRA), but doing so with a "scalpel, not a sledgehammer."

The JPMorgan analyst sees the domestic content portions of the IRA as the "most safe incentives" due to bi-partisan support of supply chain onshoring. Heriz points to First Solar, Inc. , SunRun, Inc. and Sunnova Energy International Inc. as clean tech companies particularly positioned to benefit from supply chain onshoring.

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Hydrogen: Heriz also sees the 45V tax credit for clean hydrogen producers as likely to stay due to strong backing from traditional energy companies and Republican-leaning areas. Clean hydrogen companies including FuelCell Energy, Inc. and Plug Power Inc. are likely safe from policy changes under a second Trump administration, according to Heriz.

EV Incentives: The analyst does expect subsidies for electric vehicles to be downsized or repealed, including the 30D clean vehicle tax credit of up to $7,500 on the purchase of a qualifying EV. Additionally, Heriz anticipates tightening EV charging incentives like the 30C tax credit that covers up to 30% of the cost of each charger. Some companies that could be negatively impacted by the repeal of EV and related charging incentives include EVgo Inc. , ChargePoint Holdings, Inc. and Blink Charging Co. .

Oil & Gas: Domestic oil and gas production is more influenced by market prices and global supply and demand rather than government policies, Heriz said. For this reason, the analyst expects a potentially reduced regulatory burden to be "helpful to the industry, but not life-changing in the short-term."

The Take-Away: While Heriz does expect policy changes to affect sustainable investing under the second Trump administration, she said that outflows in sustainable investing are mainly motivated by underperformance.

"Fund performance matters far more than politics," the JPMorgan analyst said.

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Luminar Technologies, Inc. (LAZR) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.19. This compares to loss of $0.21 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 15.79%. A quarter ago, it was expected that this company would post a loss of $0.20 per share when it actually produced a loss of $0.18, delivering a surprise of 10%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Luminar Technologies, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $15.49 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 15.85%. This compares to year-ago revenues of $16.96 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Luminar Technologies shares have lost about 73.9% since the beginning of the year versus the S&P 500's gain of 25.7%.

What's Next for Luminar Technologies?

While Luminar Technologies has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Luminar Technologies: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.11 on $25.29 million in revenues for the coming quarter and -$0.64 on $80.85 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

ChargePoint Holdings, Inc. (CHPT), another stock in the same industry, has yet to report results for the quarter ended October 2024.

This company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +69%. The consensus EPS estimate for the quarter has been revised 2.2% lower over the last 30 days to the current level.

ChargePoint Holdings, Inc.'s revenues are expected to be $89.68 million, down 18.7% from the year-ago quarter.

Zacks Investment Research

American Axle & Manufacturing (AXL) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 1,900%. A quarter ago, it was expected that this maker of auto parts would post earnings of $0.10 per share when it actually produced earnings of $0.19, delivering a surprise of 90%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

American Axle, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $1.5 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.52%. This compares to year-ago revenues of $1.55 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

American Axle shares have lost about 29.4% since the beginning of the year versus the S&P 500's gain of 25.2%.

What's Next for American Axle?

While American Axle has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for American Axle: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.01 on $1.45 billion in revenues for the coming quarter and $0.35 on $6.21 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Innoviz Technologies Ltd. (INVZ), has yet to report results for the quarter ended September 2024. The results are expected to be released on November 13.

This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Innoviz Technologies Ltd.'s revenues are expected to be $5.03 million, up 44.6% from the year-ago quarter.

Zacks Investment Research

The latest trading session saw ChargePoint Holdings, Inc. (CHPT) ending at $1.23, denoting a +0.82% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.74%.

Heading into today, shares of the company had lost 10.95% over the past month, lagging the Auto-Tires-Trucks sector's gain of 7.29% and the S&P 500's gain of 3.16% in that time.

Market participants will be closely following the financial results of ChargePoint Holdings, Inc. in its upcoming release. On that day, ChargePoint Holdings, Inc. is projected to report earnings of -$0.08 per share, which would represent year-over-year growth of 72.41%. Simultaneously, our latest consensus estimate expects the revenue to be $89.68 million, showing a 18.68% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.36 per share and revenue of $416.61 million, indicating changes of +54.43% and -17.77%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ChargePoint Holdings, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. ChargePoint Holdings, Inc. is currently sporting a Zacks Rank of #3 (Hold).

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Zacks Investment Research

ChargePoint Holdings Inc shares closed Wednesday down 17.01% to $1.22. Electric vehicle-related stocks are trading lower after Donald Trump won the 2024 presidential election. Investors may be weighing future policy-making decisions that could impact the industry.

Trump’s return to office, alongside a Republican-controlled Senate and a leading position in the House of Representatives, signals a sharp pivot away from the climate-focused policies pursued by the Biden-Harris administration.

What To Know: Investors are reacting to fears that Trump's proposed policy shifts could undermine the EV sector, including infrastructure developments crucial to ChargePoint's business model.

Throughout his campaign, Trump made it clear that he intends to roll back green energy subsidies and incentives that have been key to the growth of EV infrastructure. His tax policy agenda includes rescinding federal tax credits for green energy projects, a move expected to slow the pace of EV adoption as it would make EVs more expensive for consumers.

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Under the Biden administration, the EV market benefited from substantial federal support, including charging infrastructure tax credits and rebates that have helped ChargePoint expand its network and accelerate growth.

Trump’s proposed cuts to these initiatives raise questions about the future demand for charging stations, a primary revenue driver for ChargePoint.

What Else: Analysts are also concerned about the impact of Trump's proposed tariffs and trade policies on the EV industry. Trump's plan to impose a universal 10% tariff on all imports, alongside a 60% tariff on Chinese goods, could increase costs for manufacturers and suppliers in the EV supply chain, as many EV components, such as batteries, are still sourced internationally.

For ChargePoint, which relies on a global supply chain for equipment and infrastructure, these tariffs could increase costs, squeeze margins and limit the availability of critical components, potentially delaying installations. Higher tariffs could also drive up prices for EVs, reducing consumer demand, and further suppressing the market for charging networks.

Should I Sell My CHPT Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of ChargePoint have decreased by 55.29% in the past year. An investor who bought shares of ChargePoint at the beginning of the year would take a loss of $0.94 per share if it was sold today. The stock has fallen 11.87% over the past month, meaning an investor who bought shares on Oct. 1 would see a capital loss of $0.08.

Investors may also consider market dynamics. The Relative Strength Index can indicate whether a stock is overbought or oversold. ChargePoint stock currently has an RSI of 75.68, indicating overbought conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

ChargePoint has a 52-week high of $3.54 and a 52-week low of $1.20.

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Photo: Courtesy ChargePoint

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.