Will Plug Power report another shortfall in the second quarter amid continued pressure on margins?

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Plug hole (NASDAQ:PLUG) is expected to announce its second-quarter results on Tuesday, August 9, after the market closes.

The EPS consensus estimate is -$0.20 and the revenue consensus estimate is $163.97M (+31.6% YoY).

Over the past year, PLUG has beaten EPS estimates 25% of the time and revenue estimates 75% of the time.

Over the past 3 months, EPS estimates have seen 10 downgrades and revenue estimates have seen 14 downgrades.

Summary Q1:

  • PLUG stock fell after the company posted a bigger-than-expected first-quarter loss. Margins in its fuel business remained under pressure due to rising natural gas prices.
  • KeyBanc said gross margin pressures persist but are transitory. Evercore ISI said gross margins will improve “thanks to stable learning curves and scale.”

Recent News:

  • The US Senate passed the Cut Inflation Act a day earlier, which includes a record $369 billion investment in the fight against climate change. Piper Sandler said he expects upward momentum in clean energy companies, saying names like PLUG should “benefit disproportionately.”
  • Alternative energy stocks, including PLUG, rose after the US Department of Energy said fuel cells will be among the clean energy technologies included in the Defense Production Act.
  • Shares of PLUG surged after the company was awarded a 1GW electrolyser contract for a hydrogen production complex in Denmark, which would be the largest electrolyser facility in the world. Morgan Stanley said the order could generate $500 million in revenue when delivered in 2024, TheFly.com reported.
  • PLUG and New Fortress Energy (NFE) will build a 120 MW utility-scale green hydrogen plant in Texas, expected to be one of the largest of its kind in North America.
  • PLUG has been awarded a contract to deliver a 5 MW containerized proton exchange membrane electrolyser system to Irving Oil.
  • PLUG will build a green hydrogen generation plant at the port of Antwerp-Bruges in Belgium.

SA contributor JR Research said PLUG’s recent rally is not sustainable, calling it a Hold as he believes investors should wait for a significant pullback.

PLUG has fallen 10.1% year-to-date, but gained 17.8% in the last 6 months and ~38% in the last month.

Take a look at PLUG’s key stats against its peers.

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