3/1/2024 0 Comments Plug stock outlook![]() ![]() has been primarily driven by two stocks, Nikola and Plug Power, contributing more than half of the index’s negative performance.”īut they added that the “performance of various clean energy related themes has been challenging this year”, while “on a longer scale, the index level has been relatively rangebound since January 2022”. However, a spokesperson for S&P told Hydrogen Insight: “The recent weakness. ‘Reality check’ | Hydrogen developers walk back large-scale ambitions this decade The S&P Kensho Hydrogen Economy Index, calculated from the stock of 17 H 2 companies, has fallen from $234.91 on 1 August to $160.01 on 10 November - losing almost a third of its value - which, on the surface, suggests a wider problem across the hydrogen sector. So are Plug’s fortunes really just the bad luck of a single company? And because of this drop in supply - and a wider H 2 fuel shortage in California - the company had to buy hydrogen on the east coast and truck it to its customers in that state - adding significant costs to this fuel. This meant that Plug was exposed to both planned downtime for maintenance by its grey hydrogen suppliers and unplanned maintenance at its ten-tonnes-a-day green H 2 plant in Tennessee. “Unfortunately, permits don’t always move as quickly as you thought they would,” West noted. However, this project has now been delayed to the end of the year. The company has planned to shift from its current model of buying grey hydrogen to sell on to its fuel cell equipment customers, to producing green H 2 in-house with a 15-tonnes-per-day production plant in Georgia originally set to start up last quarter. Overall, I have high hopes for Plug Power's long-term success, but I am not willing to participate in its present cash burn rate," SA contributor Blake Downer writes in an August 2 report.California's hydrogen fuel shortage hits three-month mark, with filling stations still offline and no end in sight ![]() However, this isn't enough to cover their recent annual operating expenses, so I believe it will still leave them with negative cash flow. If their estimates for reducing their fuel costs hold true, the company expected they would generate $140M gross profit in 2023. They appear to be taking steps to shift their business model into one where they are no longer acting as intermediaries and are becoming fuel producers. " Plug Power finds itself in an industry presently blessed with ever-increasing demand and heavy federal subsidies. During the next quarterly earnings report release, I advise investors to closely monitor whether Plug Power has truly reached the anticipated "inflection point," as claimed by management," writes SA contributor AlmaStreet Capital in an August 7 report. While a buy recommendation may not be justified at this point, Plug Power's recent expansions and earnings improvements indicate the potential for long-term growth. " While Plug Power presents a fascinating opportunity in the emerging green hydrogen economy, its concerns related to profitability, corporate governance issues, and underperformance must be carefully considered. Stock is down 1.2% so far this year as of Monday's close.PLUG stock fell 57% in 2022, while the benchmark S&P 500 Index slipped nearly 20% for the year.Wall Street rates the PLUG stock " BUY" and Seeking Alpha authors rate it " HOLD".PLUG has an industry ranking of 55 out of 68 among electrical components and equipment stocks, as per SA's Quant ranking.PLUG has a Quant rating of " SELL", with a 1.75 rating score.Revenue of $210.3 million was up 49.4% from last year and beat expectations by $2.63 million. The company on May 9 reported Q1 GAAP EPS of -$0.35, missing estimates by $0.09.Revenue estimates have seen 2 upward revisions and 14 downward. Over the last 3 months, EPS estimates have seen 0 upward revisions and 7 downward.The consensus EPS estimate is -$0.25 and the consensus revenue estimate is $238.45 million.Plug Power ( NASDAQ: PLUG) is scheduled to announce Q2 earnings results on Wednesday, August 9th, after market close.
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