Dj Plug Power Inc. Stock Outperforms Competitors On Strong Trading Day

Plug Power Inc. PLUG reported third-quarter 2024 results, wherein its bottom and top lines missed the Zacks Consensus Estimate.

Total revenues of $173.7 million missed the consensus estimate of $208 million. The top line declined 12.6% from the year-ago quarter.

The company’s adjusted loss was 25 cents per share, wider than the consensus estimate of a loss of 24 cents per share. The bottom line fared better than the adjusted loss of 47 cents per share reported in the prior-year quarter.

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Revenue Details

The company generated revenues of $107.1 million from sales of equipment, related infrastructure and other, reflecting a decrease of 26.2% year over year. Revenues from services performed on fuel cell systems and related infrastructure were $14.1 million, up 51.6% year over year.

Revenues from power purchase agreements were $20.5 million, relatively flat year over year. The company generated revenues of $29.8 million from fuel delivered to customers and related equipment, reflecting an increase of 53.6% year over year. Revenues from other sources decreased 55.1% year over year to $2.2 million.

Plug Power, Inc. Price, Consensus and EPS Surprise

Plug Power, Inc. price-consensus-eps-surprise-chart | Plug Power, Inc. Quote

PLUG’s Costs & Expenses

The company’s total cost of sales in the quarter was $273.8 million, down 18.6% year over year. Selling, general and administrative expenses were $91.6 million, down 13.2% year over year. Interest expense was $9.2 million compared with $11.8 million a year ago.

Net loss in the third quarter was $211.2 million compared with a net loss of $283.5 million in the year-ago quarter.

Balance Sheet/Cash Flow

Plug Power, which currently carries a Zacks Rank #3 (Hold), had cash and cash equivalents of $93.9 million compared with $135 million at the end of December 2023. Long-term debt was $2.3 million compared with $1.2 million at 2023-end.

In the first nine months of 2024, net cash used in operating activities was $597.4 million compared with $863.9 million in the year-ago period. Capital expenditure totaled $253.1 million in the same period compared with $484 million in the year-ago period.

PLUG’s Guidance

For 2024, PLUG expects net sales to be in the range of $700-$800 million. The figure indicates a decrease from $891.3 million reported in 2023.

Stocks to Consider

Some better-ranked companies from the same space are discussed below:

Kadant Inc. KAI presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has a trailing four-quarter average earnings surprise of 17.2%. The Zacks Consensus Estimate for KAI’s 2024 earnings has improved 1.8% in the past 60 days.

RBC Bearings Incorporated RBC presently has a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 2.5%, on average. The consensus estimate for RBC’s 2024 earnings has increased 2.4% in the past 60 days.

Generac Holdings GNRC presently carries a Zacks Rank of 2. GNRC delivered a trailing four-quarter earnings surprise of 10.8%, on average. The Zacks Consensus Estimate for Generac Holdings’ 2024 earnings has increased 5.1% in the past 60 days.

Zacks Investment Research

Plug Power, Inc. shares are trading higher in the morning session on Wednesday.

Plug has provided its financial outlook for 2025, projecting revenue between $850 million and $950 million (street view: $1.185 billion) and a gross margin of -20% to -5%. Looking further ahead, the company aims for a target revenue of approximately $3.75 billion by 2030 and a target gross margin of over 30%.

Yesterday, in a press release, the company lowered its full-year 2024 revenue outlook to be between $700 million and $800 million versus estimates of $823.46 million.

Of the significant milestones this year, Plug expanded its hydrogen production by commissioning a 15 TPD plant in Georgia and upgrading a 10 TPD facility in Tennessee. The company also achieved record electrolyzer deployments, including a 100 MW system for Galp across five continents.

Also Read: Plug Power Stock Slides On Q3 Earnings: Revenue Miss, EPS Miss, Soft Guidance And More

Plug delivered its first liquid green hydrogen supplies to major customers like Walmart Inc., Amazon.com, Inc., and Home Depot, Inc., and launched stationary power sites across the U.S.

The company introduced next-gen PEM electrolyzers and a mobile refueler to support rapid hydrogen deployment for fleet vehicles. Additionally, Plug formed strategic global partnerships with BP, Iberdrola, and Allied Green Ammonia to expand hydrogen infrastructure.

Going ahead, Plug said it aims for a compound annual growth rate (CAGR) of around 30% for its Energy and Applications businesses from 2025 to 2030.

The company also appointed Sanjay Shrestha as its new President. Shrestha was formerly the company’s Chief Strategy Officer and General Manager, Energy Solutions. Andy Marsh will retain the position of CEO.

Meanwhile, Plug is hosting its sixth annual Plug Symposium at the Company’s Vista headquarters and manufacturing facility in Slingerlands. This event features presentations from CEO Andy Marsh and other top executives.

According to Benzinga Pro, PLUG stock has lost over 44% in the past year. Investors can gain exposure to the stock via Global X Hydrogen ETF .

Price Action: PLUG shares are trading higher by 6% to $2.025 at last check Wednesday.

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