Today, investors in Plug Power (NASDAQ:PLUG) and PLUG stock are seeing a lot of green. Shares of PLUG stock are up more than 8% on some pretty intriguing news today.
Shares of Plug Power have been on a pretty brisk decline in recent months. Indeed, since hitting a high of more than $75 per share earlier this year, PLUG stock has lost more than two-thirds of its value in relatively short order. Shares still trade below the $25 level, even after today’s rise.
The hydrogen fuel cell space is one that has been seen as a key area of growth of late. Recent political support for this sector by President Joe Biden has furthered this thesis. However, a series of negative news items have hit PLUG stock hard of late. Among these, the March 16 announcement that the company would need to restate its previously issued financial statements resulted in a meaningful selloff in this stock.
Today, Plug Power announced it has completed its restatement. Let’s dive into what was issued today, and why investors are growing bullish on this stock once again.
Restatement of Financial Statements Sending PLUG Stock Higher
Today’s announced restatement of the company’s financial statements came before the company’s May 17 deadline, and the restatements were better than the market expected.
Revenue for 2020 was actually increased by $7.2 million, reducing the company’s previously stated loss of more than $100 million to a $92.2 million loss. Revenue for 2019 and 2018 were reduced, but by nominal amounts (only $300,000 and $400,000, respectively).
Thus, investors appear to be walking away with a win here. Previously reported revenues increased, in aggregate, by more than $6 million. And on top of this, the company announced some rather bullish forward projections for revenue growth.
According to recent reports, Plug Power says it expects more than $70 million in gross billings this year. This would represent growth of more than 60% year-over-year. Additionally, Plug’s massive cash balance of more than $5 billion is seen as the key catalyst providing the growth investors are looking for with this stock.
For now, this news appears to be broadly bullish. Today’s rise appears to be warranted, especially considering the extent to which growth stocks are catching a bid today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.