Plug Power (NASDAQ:PLUG), a prominent player in the hydrogen fuel cell industry, saw shares plummet 13% on Nov. 9 following its Q3 earnings release. Company revenues came in at $199 million, or 12.8% below below Wall Street’s expectations of $228.18 million. The company also reported a loss per share of 47 cents, missing analyst expectations for a loss of 31 centst.
According to the earnings release, Plug Power faced significant supply challenges within the hydrogen network in North America.
“2023 overall financial performance has been negatively impacted by unprecedented supply challenges in the hydrogen network in North America,” the press release noted. The shortage also impacted the roll-out of certain investments, which caused a non-cash charge of $41.6 million in the quarter. Gross margins dropped from negative 24% in the third quarter of 2022 to negative 69%.
Despite these obstacles, Plug Power’s management highlighted some positive news in the quarter. Electrolyzer sales for the company exhibited rapid growth, more than tripling from the previous quarter. The firm also acquired several new global customers.
The company’s release also highlighted that Plug Power’s cryogenics and liquefier business revenue has increased significantly, despite supply-related challenges. Moreover, the company has seen growth in direct sales opportunities.
Nevertheless, shares of Plug Power have lagged the market this year. The stock had already fallen 51% before Thursday’s decline, driven by a pullback in clean-tech investments. The Global X CleanTech ETF (NASDAQ:CTEC) has fallen 37% year to date. Though Plug Power’s management struck a positive tone in their earnings release, it wasn’t enough for investors seeking reassurance.
Thomas Yeung produced this article using data from Thomson Reuters and unique generative AI prompts. These prompts help distill real-time quarterly earnings data and combine it with InvestorPlace.com’s best-in-class analysis. Our readers get a deep dive into financial results at lightning speed. These articles have been reviewed by a human editor prior to publication. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.
