Plug Power (PLUG) Shares Fall on Incurring Wider Q3 Loss - Analyst Blog

Plug Power Inc. 's ( PLUG ) shares plunged 16.5% yesterday to $4.24 after it reported a wider-than-expected third-quarter 2014 loss.

Plug Power reported third-quarter adjusted loss of 4 cents per share, wider than the Zacks Consensus Estimate of a loss of 3 cents.

Plug Power, Inc - Earnings Surprise | FindTheBest

Including a gain associated with the change in fair value of formerly issued common stock warrants, the company's net loss per share was 6 cents compared with 19 cents a year ago.

Total Revenue

In the quarter under review, Plug Power's total revenues of $19.9 million missed the Zacks Consensus Estimate of $24 million by 17.1%. The top line, however, increased significantly from $4.6 million in the prior-year quarter.

Strong rise in sales of products (up 396.8% year over year) and services (up 324.2%) primarily led to the surge in reported revenues. This was partially offset by lower research and development contract revenues (down 19.7%).

Highlights of the Release

Plug Power shipped 857 GenDrive units in the third quarter, up 24.7% sequentially and 452.9% year over year. During the quarter, the company provided GenDrive units to numerous customers, including Wal-Mart Stores Inc. ( WMT ), The Procter & Gamble Co. ( PG ), BMW and Mercedes-Benz.

The company's bookings from customers during the quarter stood at more than $25.6 million. Orders came primarily from customers like Mercedes-Benz, BMW, Wal-Mart and several others.

Plug Power's cost of revenue jumped 145.5% year over year to $21 million primarily due to higher cost of both product and service revenues, and research and development expenses. In addition, selling, general and administrative expenses also increased 79.8% year over year.

The company reported operating loss of $10.7 million in the third quarter, compared with $8 million a year ago.

Financial Update

As of Sep 30, 2014, Plug Power had cash and cash equivalents of $156.5 million compared with $5 million as of Dec 31, 2013.

Net cash used in operating activities in the first nine months of 2014 was $31 million versus $17.9 million in the year-ago period.


Plug Power provided its guidance for fourth-quarter 2014 GenDrive shipment in the range of 900-1,000 units.

For 2014, the company provided revenue projection in the band of $70-$75 million versus previous the estimate of $75 million.

Our View

The sentiment was overall bearish in this space with two other fuel cell makers, FuelCell Energy Inc. ( FCEL ) and Ballard Power Systems Inc. ( BLDP ) losing a respective 6.9% and 8.6% yesterday. It seems that investors are not too pleased with these companies at the moment.

Plug Power currently has a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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