Plug Power Inc (NASDAQ:PLUG) issued a press release this morning saying that it exceeded the goals management set at the beginning of 2015, but investors weren’t thrilled. The company’s stock slipped during regular trading hours today, falling by as much as 4.87% to $1.76 per share. It seems that the big problem might have been something management said on the conference call as the stock started tumbling within the minutes following that call.
Plug Power exceeds goals
Plug Power management said at the beginning of the year that the company would see more than $100 million in sales and more than $200 million in contract bookings. They also expected to install more than 15 of their GenFuel hydrogen storage systems and achieve a gross margin on the GenDrive systems of more than 25% by the end of the year. Additionally, the company added more than six new customers.
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For 2016, management expects to see $150 million in sales and $275 million in contract bookings. They also expect to install 25 new GenKey sites, hit a full year gross margin of more than 10%, and use less than $20 million in operating cash.
Plug Power seeks to turn EBITDA profitable
According to Bloomberg, management said Plug Power should finally reverse the trend of losses in EBITDA by the end of this year. The hydrogen fuel storage system maker has posted losses every year since its initial public offering in 1999. Consensus estimates suggest the firm will post adjusted losses of 18 cents per share this year.
FBR & Co. analyst Carter Driscoll said Plug Power’s announcement this morning was no surprise as the results were in line with expectations. He added that the company’s outlook for fiscal 2016 was also as Wall Street was expecting.
On this morning’s conference call, CEO Andy Marsh said they had signed Nike on as a customer, reports the Albany Business Review. Other big names have also begun using the company’s hydrogen fuel systems in their warehouses, including Home Depot, Wal-Mart, FedEx, and BMW.