Plug Power Inc. (NASDAQ: PLUG) is trading lower on Tuesday following the release of its third-quarter financial results, which missed Wall Street’s expectations.
The hydrogen fuel cell systems maker reported a loss of 25 cents per share on $173.7 million in revenue. Analysts had projected a smaller loss of 24 cents per share and revenue of $207.3 million for Q3.
Despite the miss, CEO Andy Marsh emphasized in the earnings release that the company’s performance “underscores our commitment to building a sustainable and profitable hydrogen future.”
As a result, Plug Power’s stock has dropped nearly 60% since the beginning of 2024.
Plug Power stock sinks on disappointing guidance
Plug Power reported a 31% sequential growth in its operating cash flows for the third quarter while gross margin loss narrowed by 37% on a quarter-over-quarter basis.
The Nasdaq-listed firm expects further improvements on both metrics in the fourth quarter.
Still, it guided for up to $800 million in full-year revenue that fell slightly shy of the $804 million that experts had forecast. Nonetheless, CEO Marsh said today:
Our progress in electrolyser deployments, advancements in hydrogen production, and expansion into new markets reflect our team’s dedication to leading the build out of the hydrogen economy.
Despite the post-earnings weakness, Plug Power stock is up close to 20% versus its year-to-date low in early September.
What the Trump administration means for PLUG
Plug Power has particularly struggled in recent sessions after Donald Trump came out victorious in the US elections in 2024.
That’s because he has previously rolled back environmental regulations and could do so again as the 47th President of the United States, potentially reducing support for clean energy initiatives.
But PLUG is expected to showcase groundbreaking projects and innovative solutions at its 6th annual symposium on November 13.
That could help put a floor under its share price that’s been in a freefall in 2024.
Wall Street currently sees an upside in Plug Power stock to $4.0 on average which suggests it could more than double from here.
Is Plug Power stock a good pick for 2025?
Plug Power is among the world’s largest buyers of liquid hydrogen and has so far deployed about 250 fuelling stations and more than 69,000 fuel cell systems.
It counts big names like Walmart and even Amazon as its top customers.
The New York-based company recently secured a $1.66 billion loan from the Department of Energy to build new production facilities.
Additionally, PLUG’s revenue is expected to grow at a compound annualized rate of 25% between 2023 and 2026.
Its shares are currently going for about 2.3 times next year’s sales indicating much of the bad news is already baked into the stock.
Put together, these stats and developments suggest Plug Power stock could prove to be a lucrative long-term pick for aggressive investors. Our market expert Crispus Nyaga also recently forecasted up to a 74% upside in PLUG.
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