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Plug Power (PLUG) Incurs Narrower-than-Expected Loss In Q1

Published 05/10/2016, 09:11 PM
Updated 07/09/2023, 06:31 AM

A leader in fuel cell technology Plug Power Inc. (NASDAQ:PLUG) reported a loss of 5 cents per share in the first quarter of 2016, a penny narrower than the Zacks Consensus Estimate of a loss of 6 cents. Reported loss was also narrower than the loss of 7 cents incurred in the year-ago quarter.

On a GAAP basis, the company reported a loss of 7 cents per share versus a loss of 6 cents per share in the year-ago quarter. The difference between operating and GAAP loss in the reported quarter was due to charges related to the change in fair value of previously issued common stock warrants.

Total Revenue

Plug Power’s quarterly revenues of $15.3 million lagged the Zacks Consensus Estimate of $26 million by 41.1%. However, total revenues were higher than the year-ago figure of $9.4 million by 62.8%. The year-over-year growth was primarily due to higher customer sites served in the reported quarter compared with the year-ago period.

Highlights of the Release

Plug Power deployed 834 GenDrive units in the first quarter of 2016, up by a whopping 214.7% year over year.

The company had nearly 9,400 GenDrive units under service contracts and/or PPA as of Mar 31, 2016, up 74.1% from the year-ago period.

Total administrative costs in the reported quarter were $13.1 million, up 23.2% from the year-ago quarter. The company started its high-power platform based on Plug Stack and system designs to expand its operations into vehicles markets that are larger than forklift trucks.

Financial Update

Plug Power exited the quarter with $66.9 million of cash and cash equivalents and restricted cash of $47.9 million.

Net cash used in operating activities in first-quarter 2016 was $6.9 compared with $13.6 million in first-quarter 2015.

Guidance

Plug Power expects new booking in 2016 to touch $275 million.

Other Release

Ballard Power Systems Inc. (NASDAQ:BLDP) posted a loss of 6 cents per share in the first quarter 2016. The Zacks Consensus Estimate for the quarter was a loss of 4 cents.

Upcoming Release

Fuelcell Energy (NASDAQ:FCEL) is expected to release its second quarter fiscal 2016 results on Jun 13, 2016. The Zacks Consensus Estimate is at a loss of 42 cents.

Our View

Plug Power’s ability to attract new customers and retain existing customers is going to be its driving force. The company is currently working with FedEx Corporation (NYSE:FDX) on the development of the first design for the range extender program. This can open up another avenue for Plug Power and help it to further strengthen its position in the hybrid hydrogen battery-powered delivery truck market.

Plug Power currently has a Zacks Rank #2 (Buy).



BALLARD PWR SYS (BLDP): Free Stock Analysis Report

PLUG POWER INC (PLUG): Free Stock Analysis Report

FEDEX CORP (FDX): Free Stock Analysis Report

FUELCELL ENERGY (FCEL): Free Stock Analysis Report

Original post

Zacks Investment Research

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