Plug Power says hydrogen-fuel business is still under pressure from ‘historically higher natural-gas prices and continued supplier disruptions’
Shares of Plug Power Inc. dipped 2% in after-hours trading Tuesday after the hydrogen fuel-cell company fell shy of expectations with its latest revenue and earnings.
The company recorded a second-quarter net loss of $173.3 million, or 30 cents a share, compared with a loss of $99.6 million, or 18 cents a share, in the year-earlier period. Analysts surveyed by FactSet were anticipating a 21-cent GAAP loss on a per-share basis.
Revenue rose to $151.3 million from $124.6 million but fell short of the FactSet consensus, which was for $159 million. Plug Power executives disclosed in a shareholder letter that new product offerings accounted for more than $56 million in revenue.
“We remind everyone of Plug’s historical seasonality for full year revenues which is expected to continue in 2022,” executives continued in the letter. “Plug’s revenue in the first half of the year typically represents approximately 30% of the full year revenue with the second half representing approximately 70%.”
They added that the company’s “fuel business continues to remain under pressure due to increased hydrogen molecule cost associated with historically higher natural-gas prices and continued supplier disruptions.”
Plug Power’s management team indicated in the letter that the company is still working toward delivering on its 2022 target for $900 million to $925 million in revenue as it seeks to “become the category king in the $10 trillion hydrogen economy.”
Shares of the company have surged 48% over the past three months as the S&P 500 has advanced 3.3%.