Plug Power stock drops after Q2 losses, revenue beats estimates

Plug Power shares fall after the company reports Q2 losses, although revenue did top estimates. Plug Power (PLUG) cites cryogenics and liquefaction as revenue drivers. Yahoo Finance Live's Julie Hyman and Brad Smith break down the report and the outlook for the hydrogen fuel cell tech company.

Video Transcript
JULIE HYMAN: We are also watching shares today of Plug Power. The stock falling by almost 12% after the hydrogen fuel cell technology company released its second quarter earnings report. Margins were challenged for the quarter, but revenue did come in at $260 million, that was ahead of analyst estimates. The company reported a loss of $0.40 a share. That was wider than the Street expected.

And most of the commentary here, Brad, does seem to be centered around the margins, which weren't just weaker than expected. They were a lot weaker than expected here.

Looking just at some of the commentary, JP Morgan saying the revenue beat was indeed somewhat offset by those margin headwinds from elevated hydrogen pricing and investments that were made to scale up the company.

BRAD SMITH: Yeah. Indeed and we're taking a look at shares right now, they're actually down by about 11.6%, as you were mentioning, some of the results a moment ago and anybody who's been tracking the stock over the course of the year. And we've had actually the pleasure to speak with the Plug CEO over the past couple quarters here. But over the course of this year, just looking at some of the reaction in the movement, it's down 23% year to date.

And so you've got to imagine where in terms of the new opportunities for this company to move forward and not just connect some of the consumers out there with the Plug Power solutions, but at the same time where in some of the investments that they're making, investors might be paying closer attention to as they're trying to ramp up their own distribution ability too.

JULIE HYMAN: Yeah. And it's interesting as well in an environment where a lot of money is flowing from government coffers, either in the form of incentives or direct grants to companies like Plug, that we have not seen better stock performance from this company.

BRAD SMITH: It's not every day you see liquefaction on a lower here, so I had to take a look at exactly what that means here for Plug Power.

JULIE HYMAN: Cryogenics and liquefaction as revenue drivers. I don't know enough about the company to know what that means, to be honest.

BRAD SMITH: It's in the weeds or in the liquids for sure.


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