PLUG Stock: 3 Things to Watch When Plug Power Reports Earnings Tomorrow

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Beaten-down clean hydrogen company Plug Power (NASDAQ:PLUG) appears to be showing some signs of life today. Shares of PLUG stock are now up more than 5% ahead of the company’s earnings report due tomorrow.

The analyst consensus for Plug Power’s upcoming fourth-quarter earnings is for a quarterly loss of 57 cents per share. Now, that’s a big loss, considering PLUG stock currently trades for around $3.60 per share (after today’s increase). But that loss is also expected to be roughly half the amount the company lost in Q4 2022. Unfortunately, revenues are also expected to come in lighter, around 8.5% lower. So, any improvement on the top- or bottom-lines could lead to a nice move higher in PLUG stock.

At least, that’s how the market seems to think tomorrow’s report will turn out. Despite downward revisions in the company’s earnings estimates, there are some analysts raising their hopes for the stock. Yesterday, InvestorPlace reported that Truist raised its price target on Plug Power to $4 per share from $3, signaling expectations around a key loan from the U.S. Department of Energy being finalized.

Let’s dive more into what investors may want to look for in this upcoming report.

PLUG Stock Moves Higher Ahead of Upcoming Earnings Report

Analysts have a wide range of price targets on PLUG stock, with a rather impressive range of between $2.50 per share and $21. Thus, with this clean hydrogen player trading near the lower end of this bound, many appear to be positioning their Plug holdings bullishly heading into earnings.

As mentioned, the company may only need to show a slight improvement in its loss and revenue decline metrics to see upside. Further financing clarity could also bolster its capital position, expanding its growth runway moving forward. For now, I can’t say with any degree of certainty which way the company will report. However, it’s clear the market is at least taking a more optimistic view of Plug at these lower levels.

Analysts believe Plug’s sales of fuel-cell systems and related infrastructure will come in at just above $153 million, down roughly 12.5% from the same quarter last year. This will be the key focal point for investors and any sort of improvement here could lead to interest in PLUG stock.

Unfortunately, though, Plug Power has been trending in the wrong direction for some time. Investors aren’t getting the kind of growth many anticipated could come from increased government spending in this sector. And while Plug Power may be a beneficiary of various government spending programs, so far, the money has been slow to roll in.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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