Why Plug Power Stock Is Plunging

Shares of green hydrogen company Plug Power Inc PLUG are moving lower Thursday after reporting mixed second-quarter financial results. The stock was downgraded by Roth MKM analysts following the print.

What Happened: Plug Power said second-quarter revenue increased 72% year-over-year to $260.18 million, which beat the consensus estimate of $242.24 million, according to Benzinga Pro. 

The company said revenue growth was driven by expansion with pedestal customers in material handling and significant growth in cryogenics and liquefaction.

Plug reported a quarterly loss of 40 cents per share, which missed analyst estimates for a loss of 26 cents per share.

The green hydrogen company said its second-quarter results demonstrate the strength of the company's vertical integration strategy and that margins are poised for a "substantial ramp" as the company continues to scale its multiple offerings. 

Final commissioning activities are underway at Plug's green hydrogen plant in Georgia.

"As Georgia produces at its full capacity, this is expected to cut our fuel margin loss by as much as half from Q2 to Q4 2023," the company said. 

Plug also highlighted "significant demand" for its green hydrogen for stationary applications that solve insufficient or unreliable grid power issues, including for EV fleet charging.

Plug reaffirmed its full-year 2023 revenue guidance of $1.2 billion to $1.4 billion versus analyst consensus of $1.28 billion. 

Following the company's quarterly results, Roth MKM analyst Craig Irwin downgraded Plug from Buy to Neutral and lowered the price target from $13 to $7.50. On the other hand, HC Wainwright & Co. analyst Amit Dayal reiterated Plug with a Buy rating and a $78 price target.

See Also: Origin Materials Stock Is Plunging Thursday: What's Going On?

PLUG Price Action: Plug shares were down 13.5% at $9.30 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Plug Power.