In a major development for the hydrogen fuel cell industry, Plug Power Inc, a key player in the sector, released its third-quarter (Q3) financial results on Thursday after the market closed. The aftermath was tumultuous, as the company’s stock experienced a substantial decline of 25.63% in after-hours trading, reaching $4.41. This marks the lowest value for the stock since June 2020. The day had started with the stock trading at $3.70, and as of now, it stands at $3.66.
At the time of this publication, Plug Power Inc stock (PLUG) has witnessed a decline.
Plug Power Inc
Current Price: $3.66
Change : -2.27
Change (%): (-38.28%)
Volume: 75.8M
Source: Tomorrow Events Market Data
Plug Power Q3 2023 Financial Results:
The financial report revealed that Plug Power Inc’s net revenue faced challenges across various segments. Sales of fuel cell systems, related infrastructure, and equipment amounted to $145.13 million, falling short of the nine-analyst average estimate of $174.14 million, resulting in a year-over-year change of -8.1%. For fuel delivered to customers and related equipment, net revenue stood at $19.37 million, slightly below the estimated $19.68 million by nine analysts on average, but reflecting a positive year-over-year change of +56.4%.
On the other hand, power purchase agreements generated $20.07 million in net revenue, surpassing the nine-analyst average estimate of $15.02 million and showcasing a significant year-over-year change of +110.7%. Net revenue for services performed on fuel cell systems and related infrastructure totaled $9.29 million, slightly lower than the $11.05 million average estimate based on nine analysts, but still representing a positive change of +10.5% year over year.
The gross profit figures, however, paint a more challenging picture. The gross profit for services performed on fuel cell systems and related infrastructure was -$8.63 million, missing the estimated -$10.43 million by eight analysts on average. The gross profit for fuel delivered to customers and related equipment was -$39.64 million, exceeding the eight-analyst average estimate of -$37.99 million. For power purchase agreements, the gross profit was -$36.91 million, higher than the estimated -$25.93 million by seven analysts on average.
Plug Power Inc attributed its overall financial performance in the third quarter to “unprecedented supply challenges” in the hydrogen network in North America. The company, however, reassured stakeholders that this setback is expected to be temporary, with a commitment to recovering by year-end. Plug Power Inc expressed confidence in its Georgia and Tennessee facilities, emphasizing their ability to operate at full capacity by the close of the year.
Georgia Green Hydrogen Plant Update:
Furthermore, the company shared significant updates on its Georgia green hydrogen plant, slated to commence liquid production between November 15 and the end of 2023. Despite the recent challenges, Plug Power Inc highlighted a robust sales pipeline for its cryogenics and liquefier business, amounting to over $1.1 billion.
In conclusion, Plug Power Inc faces headwinds in the short term, with supply challenges impacting its Q3 performance. However, the company’s strategic initiatives and positive outlook for its production facilities suggest a path to recovery, providing investors and stakeholders with cautious optimism for the future.
