A leader in fuel cell technology Plug Power Inc. (
) reported a second-quarter 2014 loss of 4 cents per share on Aug
14, in line with the Zacks Consensus Estimate. However, reported
loss was narrower than the loss of 5 cents incurred in the
comparable year-ago quarter.
Plug Power, Inc - Earnings Surprise |
On a GAAP basis, the company reported earnings of 2 cents per
share versus a loss of 14 cents per share in the year-ago quarter.
The difference between the operating and GAAP results in the
reported quarter was due to gains related to the change in fair
value of previously issued common stock warrants of $9.6 million.
The narrower year-over-year loss, solid revenues and a strong
backlog of GenDrive units had resulted in an upward revision in
prices on Aug 14. The shares gained 4.3% to close at $6.11,
reaching its highest point in nearly last three and a half months.
This inevitably led to profit booking from the investors resulting
in a correction of Plug Power's share prices which finally closed
at $5.92 on Aug 15, down 3.1% from the prior day.
Plug Power's second quarter revenues of $17.3 million surpassed the
Zacks Consensus Estimate by 4.3% and soared 130.7% from $7.5
million in the prior year. The year-over-year improvement was due
to a 125.4% rise in product revenues.
Plug Power's service revenue in the reported quarter improved by
185% year over year to $4.4 million, which also contributed to the
solid top-line performance.
Highlights of the Release
Plug Power shipped 687 GenDrive units in the reported quarter, much
higher than the 246 units shipped in the second quarter of 2013.
Thanks to robust shipments of GenDrive units to customers like
Wal-Mart Stores Inc. (
), The Procter & Gamble Company (
) and Central Grocers, the company easily surpassed its shipment
target of 650 GenDrive units provided during first quarter earnings
Plug Power exited the quarter with a backlog of 2,659 GenDrive
units valued at $36.6 million.
The company reported research & development (R&D) expenses
of nearly $1.4 million in second quarter 2014, up from $0.82
million in second quarter 2013. The growing investment in R&D
will help the company to come up with more fuel efficient energy
and technology solutions.
Plug Power exited the quarter with $168.6 million of cash and cash
equivalents versus $5.02 million at 2013 end.
Net cash used in operating activities during the first half of 2014
was $19.9 million versus $10.9 million in the comparable year-ago
2014 total revenues are expected to reach $75 million, with total
bookings expected to touch $150 million.
Ballard Power Systems Inc. (
) posted a loss of 3 cents per share in the second quarter of 2014,
in line with the Zacks Consensus Estimate.
We believe that fuel cell technology holds immense potential
particularly for providing green energy solutions for industrial
usage. This technology actually boasts of zero emission levels
making it all the more appealing.
After successfully using hydrogen fuel cell in the food and retail
material handling sector, Plug Power is set to utilize its hydrogen
fuel cells to power electric lift trucks at automotive
manufacturing sites worldwide. In the reported quarter Plug Power
was able to secure deals from the likes of Volkswagen, BMW,
Mercedes-Benz and Honda.
The design improvement of its Class 2 product helped the company to
lower material costs and boost gross margins.
However, higher operating expenses are eating into its profits, as
the company continues to report in the red. Plug Power has a Zacks
Rank #4 (Sell).
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