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Plug Power reported about 178 million dollars in revenue for the second quarter, which was higher than the 170 million dollars analysts expected. The company lost 7 cents per share, a slight improvement over the roughly 8 cent loss that was anticipated. Most importantly, the company reached a break-even gross margin, meaning it is no longer losing money on the direct cost of the products and fuel it sells.
This progress is a key step in the company's plan to stop buying expensive hydrogen from third parties and instead use its own production plants. By making its own fuel, Plug Power aims to turn its historically high costs into profits. Management also raised its revenue outlook for the rest of the year and reported that it used less cash than in previous quarters, which helps address concerns about how long its current funding will last.
The company reports its second quarter results today. Analysts are looking for a loss of about 8 cents per share on revenue of roughly 170 million dollars. For a business that has historically spent more cash than it brings in, the numbers themselves matter less than the progress on its plan to build its own hydrogen plants.
The key thing to watch is whether the company is still on track to reach positive earnings before interest and taxes by the end of this year. To get there, it needs to prove it can produce its own hydrogen fuel cheaper than it can buy it from others, which has been the main drain on its profits in the past.
The company will share its latest financial numbers on August 10. This update will be a key check on whether the firm is making progress toward its goal of reaching positive earnings before interest and taxes by the end of the year. Investors will likely focus on cash burn and whether the company is successfully producing more of its own hydrogen fuel. Making its own fuel is central to the plan to stop losing money on every sale.
Source: GlobeNewsWire
The company is selling its Graham, Texas project and closing a deal on its New York Gateway project with Stream Data Centers. These moves are expected to provide about 80 million dollars in immediate cash. This is part of a larger plan to improve its cash position by more than 275 million dollars through selling assets and cutting costs.
This is a helpful step for a business that has been spending more cash than it brings in. By selling these projects, the company can fund its operations without having to sell more shares and dilute current owners.
Source: GlobeNewsWire
The company secured an order for 50 megawatts of electrolyzers, which are machines that use electricity to split water into hydrogen and oxygen. The equipment is for the Hunter Valley Hydrogen Hub in Australia, which recently reached a final decision to move forward with construction.
This win helps build the company's backlog of work and proves it can compete for large-scale international projects. Converting these types of orders into actual revenue is a key part of the plan to grow the business toward profitability.
Source: GlobeNewsWire
The company has a history of reporting larger losses than analysts expect, though it has recently begun to narrow those gaps as its new production plants come online.
| Expectation | |
|---|---|
| EPS | $-0.07 |
| Revenue | $197M |