Hydrogen fuel cell company Plug Power (PLUG) reported a greater than expected loss in the fourth quarter and had negative revenue. The PLUG stock fell.
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Losses per share increased from 7 cents to $ 1.12 in the same quarter last year, losing predictions of a loss of 8 cents per share. The negative revenue of $ 316.3 million was less than a gain of $ 91.7 million in the same quarter last year and worse than views for $ 84.9 million.
The company offered guarantees of PLUG shares to large customers such as Amazon (AMZN) and Walmart (WMT) in exchange for the fuel cells they purchased.
In the fourth quarter, Plug Power recorded $ 456 million in costs, most of which were “non-monetary expenses related to the accelerated acquisition of a customer’s remaining guarantees”.
As PLUG’s stock started to skyrocket last fall, while Joe Biden’s election raised hopes for green energy policies, these warrants have become more attractive to exercise. On Thursday, Plug Power said its customer warranty program was fully accounted for.
But Plug Power reported record gross sales last year, with $ 96.3 million in the fourth quarter and $ 337.4 million for the full year.
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Plug Power is still optimistic in 2021
PLUG’s shares fell 6%, to 47.03 in the stock market today, and are finding resistance in their 50-day line, according to analysis by the MarketSmith chart. Among other fuel cell stocks, FuelCell Energy (FCEL) fell 4.6%, Ballard Power Systems (BLDP) was off 2.9%, and Bloom Energy (BE) fell 3.3%.
Despite losses in the fourth quarter, Plug Power said it is on track to meet its recently increased gross sales targets for 2021 and 2024. In January, the company increased its forecast for 2021 to $ 475 million, from a previous forecast of $ 450 million. Looking further ahead, management raised its gross revenue target for 2024 to $ 1.7 billion, an increase of 40% over the previous forecast.
The company has also been expanding its operations abroad so far this year. On Wednesday, South Korean conglomerate SK Group closed its $ 1.5 billion investment in a joint venture with Plug Power to expand hydrogen energy in Asia. The JV is scheduled for launch this year.
Follow Gillian Rich on Twitter for energy news and more.
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