PLUG Stock Dips Ahead of Q1 Earnings. 10 Things to Know.

Plug Power (NASDAQ:PLUG) stock is down about 12% ahead of the fuel cell maker issuing its latest quarterly results after markets close today.

Image of a man driving a forklift in a warehouse.
Source: Halfpoint/ShutterStock.com

So what do you need to know?

Well, the Latham, New York-based maker of hydrogen fuel cells and related systems is scheduled to report earnings after the bell today, and investors are selling the stock in advance. This is likely on expectations that the company will miss Wall Street targets.

So far in 2022, PLUG stock has fallen 40% to trade at $17 a share. Here are 10 things to know about Plug Power ahead of its latest earnings print.

What to Know About PLUG Stock

  1. Plug Power supplies hydrogen fuel cells, with many uses revolving around forklifts for warehouses.
  2. Plug Power has secured an impressive line up of clients that use its hydrogen-powered forklifts, including Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT), Nike (NYSE:NKE) and Home Depot (NYSE:HD).
  3. Despite the perception that Plug Power is an electric vehicle startup, the company has been in business since 1997 and been publicly traded since 2002. However, since going public, PLUG stock has declined more than 80%.
  4. Plug Power is working to expand from forklifts and have its hydrogen fuel cell systems power heavy-duty vehicles and machinery used at U.S. ports where container ships are unloaded. It is also targeting data centers and distribution hubs.
  5. On April 19 , Plug Power announced an agreement with Walmart to deliver up to 20 tons per day of liquid green hydrogen to power material handling lift trucks at Walmart fulfillment centers.
  6. Despite its successes, Plug Power still faces obstacles to widespread adoption of its technology. Many U.S. states, such as California, are scaling back the financial incentives they offer to companies for using clean technologies.
  7. CFRA Research recently lowered its price target on PLUG stock to $23 a share from $35.
  8. Plug Power is increasingly looking to Europe for expansion opportunities, having signed deals with automakers such as Mercedes Benz and Renault.
  9. In February 2022, Plug Power received approval to build a 350,000-square-foot fuel-cell factory outside Albany in upstate New York at a cost of $55 million.
  10. For its quarterly results today, Wall Street expects Plug Power to report an earnings per share (EPS) loss of 16 cents on revenues of $144.49 million.

What’s Next

We’ll see if Plug Power can beat analysts’ expectations when it reports first-quarter numbers after markets close at 4 p.m. Eastern today. Any beat to the upside or bullish forward guidance could see the stock reverse its downturn and move higher.

However, any disappointment and PLUG stock is likely to sell off further.

On the date of publication, Joel Baglole held a long position in HD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.  

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/plug-stock-dips-ahead-of-q1-earnings-10-things-to-know/.

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