Why Plug Power Is Losing Charge In Premarket Today

Shares of hydrogen and fuel-cell energy company Plug Power, Inc. PLUG slumped in premarket trading on Thursday.

The Latham, New York-based company reported second-quarter revenue of $260.2 million, up 72% year-over-year, ahead of the consensus estimate of $242.24 million. The gross margin of -30% came in below the consensus estimate of -7%, said KeyBanc Capital Markets analyst Sangita Jain said.

The analyst said that while the company reiterated its 2023 revenue guidance at $1.2 billion to $1.4 billion, it did not reaffirm the 4-10% gross margin guidance. She lowered her 2023 gross margin estimate from about 0% to -4%, although expecting it to become progressively better.

“Overall, the demand outlook is robust as is evident from the recent product announcements, but we await signs of a margin turnaround and financing announcements before turning more constructive,” Jain said.

KeyBanc maintained a Sector Weight rating on Plug Power shares.

According to Benzinga Pro data, Plug Power shares fell 9.49% to $9.73 in premarket trading.

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