Blink to Reduce Headcount by 14% to Improve Operational Efficiency
Blink Charging Co. BLNK, an owner, operator and provider of EV charging stations and services, has announced that it is set to execute an operational cost reduction plan to improve its short and long-term performance, given current economic conditions.
The plan involves reducing its global workforce by 14%, which is expected to generate annual savings of around $9 million. Implementation of these changes will begin immediately and is set to be completed by the first quarter of 2025. The initiative is intended to enhance operational efficiency by optimizing company functions.
In the second quarter, the company reported total revenues of $33.3 million, up from $32.8 million in the second quarter of 2023. Its gross profit fell to $10.7 million (32% of revenues) from $12.3 million (37% of revenues) in the second quarter of 2023 due to a change in sales mix toward products made by third parties. Operating expenses decreased to $31.4 million from $53.4 million in the second quarter of 2023 due to a decline in compensation and G&A expenses.
Blink continued to increase its market share and grow its charging network by contracting, selling, or deploying 4,106 charging stations in the second quarter. It distributed nearly 33 gigawatt hours of energy through BLNK's charging networks. For 2024, the company projects its total revenues in the range of $145-$155 million, suggesting a rise from $140.6 million reported in 2023. It projects the gross margin to be around 33%, suggesting an increase from 28.6% reported in 2023. It expects to achieve positive adjusted EBITDA by 2025.
Blink plans to bolster its financial stability, profitability and competitive edge. It aims to build a more efficient and resilient organization to support future growth and strategic advantage. These actions are intended to improve the company's financial outlook and increase shareholder value.
Zacks Rank & Key Picks
BLNK currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Dorman Products, Inc. DORM, Blue Bird Corporation BLBD and Douglas Dynamics, Inc. PLOW, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for PLOW’s 2024 earnings suggests year-over-year growth of 60.4%. EPS estimates for 2024 have improved 15 cents in the past 60 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Douglas Dynamics, Inc. (PLOW) : Free Stock Analysis Report
Dorman Products, Inc. (DORM) : Free Stock Analysis Report
Blue Bird Corporation (BLBD) : Free Stock Analysis Report
Blink Charging Co. (BLNK) : Free Stock Analysis Report