Plug Power Surpasses Expectations
Plug Power Inc (NASDAQ:PLUG) recently announced outstanding 2018 Q3 earnings outperforming those of Q3 2017 and surpassing its own guidance for the same quarter. According to a shareholder letter, the company’s revenue rose by over 25% compared to 2017’s Q3 results.
The third quarter results surpassed the management’s EBOTDA projections. The company generated $53.2 million in revenue compared to $34.6 million raised during the same period last year. Also included in the financial report are the units sold during the third quarter. Plug power shipped over 1,400 GenDrive units for the Q3 2018. 2,576 shipped in the Q3 of 2017. However, seven GenFuel sites were sold during the 2018 period against nine during the same period last year.
The company announced an increase in the GAAP gross profit totaling $4.4 million for the Q3/2018. This is an increase from last year’s negative $19.4 million.
With the impressive third quarter results, the company reaffirmed its $175-190 million annual revenue projection. The company announced expansion plans. It also reaffirmed that its service operations were on track to becoming profitable by mid-2019. The company credits its financial growth to “longer ProGen fuel cell stack life and increased labor efficiency.”
Following the vast demand for their products, plug power is opening a bigger manufacturing plant in Clifton Park, a 15 minutes drive from the company’s headquarters. With the new manufacturing facility, the company can now surpass the current production capacity of 20,000 fuel cell units annually.
With impressive earnings come heart-warming ratings; Plug Power has since been upgraded to “Buy” rating by multiple brokerages. First there was Zacks and Investment Research which recommended a “Buy” rating with a target price of $2. The best possible price projected by the Zacks Investment Research is almost a 9% improvement from the company’s present price.
HC Wainwright granted Plug Power a “Buy” status setting the price target at $4, double that of Zacks’ and over a 17% improvement on the current price. B. Riley matched HC Wainwright‘s projection by giving Plug Power a “Buy” rating. However, ValuEngine projected a decrease in Plug Power’s stock. It lowered the company’s rating from a “hold” to a “sell”.
In general, Plug Power’s stock is looking good in the eyes of investment analyst garnering a “consensus rating of “Buy” with a consensus target price of $3.29.”
21.2 million Shares on Sale
Despite the impressive Q3 results and outstanding investment analysts’ rating, two of the company’s largest shareholders are selling their shares. The sale will be facilitated by Plug Power and the 21.2 million shares will be going for $1.82 per share.