The relatively low demand and competition from alternative technologies can make it challenging for Plug Power to achieve profitability in the short term. The market for hydrogen fuel cells is still in its nascent stage, with limited adoption compared to other energy sources. Plug Power has to invest heavily to gain market adoption and build its sustainable growth. Building and maintaining this infrastructure can be costly, especially in the early development stages. Hydrogen fuel cell technology requires a substantial initial investment in infrastructure, including hydrogen production, storage and distribution facilities. As Plug Power expands its operations and increases production volumes, it incurs costs associated with manufacturing, supply chain management and quality control. Developing and scaling up the manufacturing capabilities for fuel cell systems can be expensive. There are also additional expenses like manufacturing and production costs. In other words, Plug Power without the stock dilution would have reported a higher negative earnings per share figure than the basic and diluted loss of 35 cents for the first quarter of 2023. This implies potential stock dilution, which is negative as it reduces the book value of the shares, but it is a smart way to reduce the net loss per share by dividing the total net loss by a higher number of shares. It also recorded a weighted average number of common shares outstanding of 589,205,165 for the first quarter compared to 577,866,983 in the same period last year. This is very negative, reflecting a weak and highly unprofitable business system. The company saw retained earnings of -$3.12 billion for 2022, compared to -$2.4 billion in 2021, and is accumulating higher deficits. All three figures widened year over year, meaning the company performed worse than in prior-year periods. However, the gross loss reported was $69.3 million, while the operating loss was $209.79 million and net loss was $206.56 million. Plug Power reported $210.30 million in revenue, which grew 49% year over year, reaffirmed its 2023 targets and said it remains focused on key initiatives that will help it achieve revenue growth and find its path to profitability. Was the drop justified? I argue that it was as there were no changes in major key financial metrics and both net income and free cash flow were negative. Investors, however, did not appear to be impressed as the stock lost 19% for the week ended May 11. Plug Power announced its first-quarter results on May 9. Click here to check it out.įurther, there are several main risks and challenges that could prevent the company from achieving profitability soon. Warning! GuruFocus has detected 5 Warning Signs with PLUG. The Company is now leveraging its know-how, modular product architecture and foundational customers to rapidly expand into other key markets including zero-emission on-road vehicles, robotics, and data centers.Plug Power: Why Profitability May Be Too Far Away Plug’s vertically integrated GenKey solution ties together all critical elements to power, fuel, and provide service to customers such as Amazon, BMW, The Southern Company, Carrefour, and Walmart. Plug delivers a significant value proposition to end-customers, including meaningful environmental benefits, efficiency gains, fast fueling, and lower operational costs. As a result, the Company has deployed over 60,000 fuel cell systems for e-mobility, more than anyone else in the world, and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway across North America. ![]() ![]() Plug created the first commercially viable market for hydrogen fuel cell (HFC) technology. The Company’s innovative technology powers electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the power, energy, and transportation industries to address climate change and energy security, while providing efficiency gains and meeting sustainability goals. Plug is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell (HFC) turnkey solutions. ![]() A playback of the call will be available online for a period following the event. īoth the shareholder letter and webcast can be accessed at on the company’s home and investor relations pages. The quarterly shareholder letter has been posted at. (NASDAQ: PLUG), a leading provider of turnkey hydrogen solutions for the global green hydrogen economy, has announced today its 2023 first quarter results. LATHAM, N.Y., (GLOBE NEWSWIRE) - Plug Power Inc.
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