Earnings Results: Plug Power’s stock plunges 12% as company sees ‘unprecedented supply challenges’

by | Nov 9, 2023 | Stock Market

Shares of Plug Power Inc. dropped more than 12% in the after-hours session Thursday after a wider loss and a revenue miss for the fuel-cell company, which said it faced “unprecedented supply challenges.” Plug Power
lost $283.5 million, or 47 cents a share, in the third quarter, compared with a loss of $170.8 million, or 30 cents a share, in the year-ago quarter.

Revenue rose to $199 million, from $189 million a year ago, the company said. Analysts polled by FactSet expected Plug Power to report a loss of 31 cents a share on sales of $220 million. The year’s financial performance overall “has been negatively impacted by unprecedented supply challenges in the hydrogen network in North America,” Plug Power executives said in a letter to investors. The “severe” hydrogen shortages have affected Plug Power’s direct cost of services as well as the timing for implementation of fleet upgrades for its customers. And these have been compounded by cost increases from inflation impacts on labor, materials and overhead, the company said. “We believe this hydrogen-supply challenge is a transitory issue, especiallyas we expect our Georgia and Tennessee facilities to produce at full capacity by year-end,” it added. Plug Power also warned that it will need to tap capital markets to fund its business. “The company is pursuing a number of debt capital and project-financing solutions,” including corporate debt, loan programs through the Department of Energy, and a memorandum of understanding with green-energy company Fortescue, in …

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