Plug Power (NASDAQ:PLUG) Posts Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Key Points

• Plug Power missed on earnings but beat on revenue: It reported a loss of $0.12 per share, $0.05 worse than analysts expected, while revenue of $200.6 million topped estimates and rose 13% year over year.
• Margins and cash use improved: Gross margin improved to negative 2.7% from negative 68% a year earlier, and quarterly net cash usage fell to about $28 million. The company reaffirmed 15%–16% full-year revenue growth guidance and is targeting positive Q4 EBITDAS.
• The outlook carries execution and liquidity risks: Q4 targets depend on customer deployments and expected sales mix; Plug ended the quarter with $134 million in unrestricted cash, while proceeds from a planned asset sale are delayed and excluded from its Q4 forecast.

Plug Power (NASDAQ:PLUG - Get Free Report) released its quarterly earnings data on Monday. The electronics maker reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.05), Zacks reports. The company had revenue of $200.60 million for the quarter, compared to analyst estimates of $198.36 million. Plug Power had a negative return on equity of 56.01% and a negative net margin of 220.59%.

Here are the key takeaways from Plug Power's conference call:

• Q3 revenue rose 13% year over year to about $201 million, while gross margin improved to negative 2.7% from negative 68% a year earlier and operating expenses fell to about $70 million. Net cash usage declined to a quarterly low of about $28 million, with no capital raised; reported positive EPS included non-cash fair-value gains, and the company said it would otherwise have reported a net loss.
• Management reaffirmed full-year revenue growth guidance of 15%–16%, implying roughly $280 million of Q4 revenue, and is targeting positive Q4 EBITDAS and approximately flat net cash usage. The outlook depends on executing customer deployments and achieving expected sales volume and mix.
• Material-handling demand strengthened: GenDrive deployments more than doubled year over year to 1,136 units, and a Walmart refresh cycle is expected to begin in Q4 with about 2,000–2,500 units. Plug cited the broader refresh opportunity and potential new customers as additional growth drivers.
• Plug signed a 280 MW electrolyzer supply agreement with Arcadia eFuels and was named preferred supplier for four additional Arcadia projects representing more than 1 GW of potential capacity; it also cited a 50 MW Orica order and other projects in execution or commissioning. However, deliveries under the Arcadia agreement depend on the project reaching notice to proceed, and the company expects electrolyzer revenue to be slightly lower for the full year.
• Q4 cash and earnings expectations face execution and liquidity uncertainties: unplanned plant outages pressured Q3 fuel margins, while Stream asset-sale proceeds are delayed and excluded from the Q4 forecast. Plug ended the quarter with $134 million in unrestricted cash and is targeting release of about $62 million of restricted cash by the end of Q1 2027.

Plug Power Trading Up 3.4%

NASDAQ:PLUG traded up $0.05 during mid-day trading on Monday, hitting $1.50. 82,310,804 shares of the company's stock were exchanged, compared to its average volume of 71,067,867. The company has a 50 day simple moving average of $1.78 and a 200-day simple moving average of $2.37. The company has a current ratio of 2.32, a quick ratio of 1.32 and a debt-to-equity ratio of 1.29. Plug Power has a fifty-two week low of $1.30 and a fifty-two week high of $4.33. The firm has a market capitalization of $2.10 billion, a P/E ratio of -1.19 and a beta of 2.13.

Insider Transactions at Plug Power

In other Plug Power news, insider Benjamin Haycraft sold 200,000 shares of the company's stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $2.14, for a total value of $428,000.00. Following the completion of the transaction, the insider directly owned 101,249 shares in the company, valued at approximately $216,672.86. This represents a 66.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 241,935 shares of company stock valued at $509,397. Corporate insiders own 1.37% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on PLUG. Susquehanna cut their target price on shares of Plug Power from $2.50 to $1.75 and set a "neutral" rating on the stock in a research report on Wednesday, October 14th. Wall Street Zen upgraded shares of Plug Power from a "strong sell" rating to a "sell" rating in a report on Saturday, October 17th. HC Wainwright reiterated a "buy" rating and issued a $7.00 price target on shares of Plug Power in a research note on Tuesday, September 29th. UBS Group reissued a "buy" rating and set a $5.00 price objective on shares of Plug Power in a report on Tuesday, August 11th. Finally, Weiss Ratings raised Plug Power from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, October 21st. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $3.40.

About Plug Power

Plug Power Inc develops hydrogen fuel cell and hydrogen-generation solutions for businesses seeking alternatives to conventional power and fuel sources. Its offerings include fuel cell systems, electrolyzers that produce hydrogen, hydrogen storage and handling equipment, and related infrastructure and services.

The company's products are used in applications such as material-handling equipment, including warehouse forklifts, as well as stationary power and other industrial and mobility uses.

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