Plug Power and Lending Club released their latest earnings reports before opening bell this morning. Plug Power posted adjusted losses of 7 cents per share on $17.6 million in revenue, compared to the consensus estimates of 5 cents per share in losses and $34.84 million in revenue.
Lending Club posted adjusted losses of 3 cents per share on $112.6 million in revenue. Analysts had been expecting adjusted losses of 7 cents per share and $103.7 million in revenue. In last year’s third quarter, the online lending platform reported losses of 4 cents per share on $115.1 million in revenue.
Plug Power shares tumble on results
Plug Power reported GAAP gross margins of 2.2%, marking a major improvement from the year-ago quarter. The company elected to stop providing non-GAAP metrics for adjusted revenue, adjusted gross margin, adjusted earnings and adjusted EBITDAS due to impacts from deployed power purchase agreement transactions. This is likely the reason for the huge miss on revenue because the new agreements require a different accounting structure.
Seth Klarman On Margin Of Safety Investing
This is part nine of a ten-part series on some of the most important and educational literature for investors with a focus on value. Across this ten-part series, I’m taking a look at ten academic studies and research papers from some of the world’s most prominent value investors and fund managers. All of the material Read More
The hydrogen fuel cell system supplier deployed systems at three sites under power purchase agreements, with the value of the deployed systems amounting to $17.3 million and deployment costs at $11.5 million. This year’s agreements had changes in the financing arrangements which impacted revenue and cost recognition.
Plug Power signed two new customers and worked to expand existing customers such as Walmart, Home Depot and Sysco.
Shares of Plug Power plunged by as much as 14.79% to $1.21 in premarket trades.
Lending Club shares jump on solid results
Lending Club’s GAAP losses per share were 9 cents, compared to breakeven last year, while adjusted EBITDA fell to -$11.1 million from $21.2 million in last year’s third quarter. Incentives paid to investors drove most of this year’s losses. The company’s transaction revenue was $100.8 million, beating the consensus of $95.7 million. Loan originations declined 12% year over year from the year-ago quarter’s $2.24 billion, although they were up 1% sequentially.
Lending Club expects its fourth quarter revenue to be between $116 million and $123 million. Analysts were projecting $116.2 million. The company expects net losses of $48 million to $38 million, adjusted EBITDA of -$15 million to -$5 million and operating revenue of $116 million to $123 million.
Shares of Lending Club soared in premarket trading, climbing by as much as 7.41% to $5.51 per share.