Plug Power's stock (NASDAQ: PLUG) are mildly green during this morning's pre-market, with earnings looming large before the opening bell. The company, a pioneer in hydrogen fuel cell technology, has seen dramatic shifts in its business focus and financial health since its inception, and has missed on both top and bottom lines in each of the past three reports.
With the average miss on revenue in each of the past three quarters over 20%, some trepidation for bulls heading into the print could be forgiven. EPS losses have narrowed from -$0.47 back in March 2024, through to -$0.24 during the most recent quarter, and with markets expecting a $0.23 loss today, the company still has a ways to go in order to turn profitable.
The PLUG stock price has fallen 30.90% on a year-to-date basis, and more than 58% over the past 12 months, as the company looks to rebuild confidence. Fresh from 52 week lows in the past week of trading, holders are looking for a shift in sentiment, and some signs of positivity from the call.
Originally established to develop hydrogen-powered residential systems, the company pivoted to producing hydrogen fuel cells and charging systems primarily for warehouse forklifts. This shift marked the beginning of its journey into the commercial hydrogen market.
The company's decision to incentivize major clients like Amazon and Walmart through stock warrants affected its financial bottom line, leading to negative revenue in 2020. However, the company recorded positive revenue growth in 2021 and continued its upward trend into 2022 and 2023, buoyed by strategic acquisitions.
Despite these positive strides, Plug Power's core business continued to battle market demand issues, significantly impacting its revenue. For the first nine months of 2024, the company reported a revenue plunge and diminishing operating margin. For the full year, it's projected that revenue will decline by 21%, hitting approximately $705 million, accompanied by a net loss of $738 million.
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