Plug Power Inc.’s (NASDAQ:PLUG) stock is down on Tuesday after its financial results for the third quarter were released. The company missed Wall Street expectations.
Hydrogen fuel cell system maker, reported loss of 25c per share and revenue of $173.7m. Analysts expected a loss per share of only 24 cents and a revenue of 207.3 million dollars for the third quarter.
Andy Marsh, the CEO of the company, stated in a earnings announcement that despite the missed target the performance “underscores the commitment we have to build a profitable and sustainable hydrogen future.”
Plug Power stock is down nearly 60% from the start of 2024.
Plug Power shares sink on disappointing guidance
Plug Power’s operating cash flow grew by 31 percent sequentially in the third quarter, while its gross margin fell 37% quarter-over quarter.
Both metrics are expected to improve further in the fourth-quarter for this Nasdaq listed company.
It still guided up to $800 in revenue for the full year, which was slightly less than what experts predicted of $804 million. Marsh, the CEO of Marsh Communications Inc. said:
The progress we have made in the deployment of electrolysers, the advancements in the production of hydrogen, and the expansion to new markets reflects our commitment to lead the development in the hydrogen economy.
Plug Power’s stock has gained close to 20 % since its low for the year in early September.
What Trump’s administration means for PLUG
Plug Power’s performance has been particularly poor in recent sessions, after Donald Trump won the US election in 2024.
This is because, as 47 th president of the United States he could roll back the environmental regulations again and reduce support for initiatives to promote clean energy.
On November 13, PLUG will be showcasing innovative projects at its sixth th Annual Symposium.
This could put some floor beneath its stock price, which has been falling in freefall since 2024.
Wall Street sees Plug Power’s stock as rising to an average of $4.0, which means it can more than double.
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Plug Power, one of the largest liquid hydrogen buyers in the world, has installed more than 69,000 Fuel Cell Systems and 250 stations.
The company counts as customers such big-name retailers like Walmart, Amazon and others.
New York’s company has recently received a loan of $1.66 Billion from the Department of Energy for new production facilities.
PLUG is also expected to see its revenue grow by a rate annualized of 25 percent between 2023-2026.
The stock is currently selling for about 2.3x next year’s revenue, indicating that the worst news has already been baked in.
These stats and recent developments indicate that Plug Power could be an attractive long-term investment for investors who are aggressive. Crispus Nyaga, our market analyst, recently predicted a PLUG gain of up to 74%.
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