Plug Power Inc PLUG, will be reporting its third-quarter (Q3) earnings on ABC after market hours.
The Street expects the Latham, New York-based company to report a negative 30 cents in EPS and $237.92 million in revenue. Plug Power specializes in hydrogen fuel cell technology and provides innovative solutions for various industries, primarily focusing on clean energy and hydrogen-based products and services.
The firm is a top contender in the Biden administration’s $7 billion federal grant program. The funding has been earmarked to launch seven Regional Clean Hydrogen Hubs (H2Hubs).
As Plug reports its Q3 earnings, here's what analysts will be focusing on.
Business & Fundamentals: Plug Power’s business momentum is fenced by many factors. It is a capital-intensive business, so capital costs become a dead weight at a time of high-interest rates. Though the company has been moving towards improving its margins, profitability hasn’t come to sight yet.
Investors are betting on tailwinds from the green energy transition and subsequent growth in the hydrogen economy. However, these tailwinds could only translate meaningfully for the business over the medium-to-long term.
Early investors in Tesla TSLA clearly understand what’s at stake here — it took a decade (2010-2020) for that stock to finally take off. Disruption takes time, and so could the hydrogen economy and Plug Power.
Related: Hydrogen’s Make-Or-Break Moment: Industry Awaits Key Treasury Decision On Tax Credits
Power Plug Analyst Focus
Analysts will be looking for any updates on the company’s investment in green hydrogen plants, as these remain crucial to the company achieving positive gross margins by Q4 this year.
Ratings & Consensus Estimates: Over the past month, many Wall Street analysts have lowered their price target for PLUG stock.
- Morgan Stanley’s Andrew Percoco lowered his price target from $10 to $9.
- Susquehanna’s Biju Perincheril now has a price target of $13 from $14 earlier.
- Vikram Bagri of Citigroup lowered it from $13 to $12.50.
- JPMorgan’s Bill Peterson lowered from $14 to $12.
- Consensus rating for the stock stands at a Buy.
PLUG Price Action: PLUG stock is down about 60% over the past year, and -7.5% over the past month alone. The stock traded at $6.02 at Nov. 8 close.
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