Plug Power Inc (NASDAQ:PLUG) will posts its third-quarter earnings on November 12 before the market opens, and analysts are estimating revenue growth of 420% or even higher. Consensus estimates are for a loss of 3 cents on revenues of $24.37 million.
Bookings, guidance numbers to watch out for
Plug Power is different from other companies in that it almost shares its fundamental business updates in real-time. The arguments over the company releasing information real-time are divided, with some saying management is doing this to bring in more transparency while others believe that the company is doing it to control expectations.
Recently, the company announced that it has shipped total 857 GenDrive units to material-handling customers in the third-quarter of 2014 in North America. This is an increase of 450% compared to the third-quarter of 2013, when 155 GenDrive units were shipped. At $18,500 a unit, 857 GenDrives equates to product revenues of $15.8 million, says a report from Seeking Alpha. Analysts are expecting the company to post revenue of $24 million, so the service revenue could be between $8 to $9 million, notes the report.
For the third-quarter, report believes that bookings and guidance are more important than revenues as Plug Power is a growth company. Management has already released the third-quarter proxy results a month back, but it has yet to reveal its bookings outlook for 2015, which is more important for investor’s point of view.
Recent deals that fueled Plug Power
For the second-quarter, Plug Power earnings came in line with the expectations, sending the stock up on 4%.
Shares of Plug Power Inc (NASDAQ:PLUG) surged 4.11% to $5.13 after the news that the company entered into a long-term hydrogen distribution deal with Praxair. Under the deal, the company will offer Praxair hydrogen to its U.S. customers who use Plug Power GenKey hydrogen fuel cell solutions including GenDrive fuel cell units, GenFuel hydrogen fuel and infrastructure, and GenCare maintenance service. Plug Power CEO Andy Marsh said in a statement said, “Our agreement with Praxair will enable us to offer the most reliable and economical hydrogen solution to our customers.”
Newark Markets has decided to shell out funds for hydrogen fuel cell technology and looks forward to installiing Plug Power’s full GenKey solution at a food distribution building under construction in Newark. The company bought additional 110 GenDrive units, which is twice the size of its fuel cell powered lift truck fleet at the Newark site.