Plug Power Q2 2017 earnings were released before opening bell this morning. The company reported adjusted losses of 10 cents per share on $22.6 million in sales, missing the consensus estimates on both the top and bottom lines. Analysts had been expecting losses of 6 cents per share on $28.57 million in sales. In last year’s second quarter, the hydrogen fuel cell system maker reported $20.5 million in sales.
Plug Power Q2 2017 earnings
The Plug Power Q2 2017 earnings report revealed a GAAP loss of 19 cents per share or $42.6 million, compared to net losses of 7 cents per share or $13.2 million in the year-ago quarter. The adjusted result above excludes warrant-related charges.
Plug Power deployed four more GenKey sites during the second quarter, two of which were power purchase agreement sites. It also deployed 891 GenDrive units, which was in line with management’s expectations. In the year-ago quarter, the company deployed 955 GenDrive units and six GenKey sites.
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Fuel cell systems and infrastructure gross margins were 25% as the GenDrive gross margin was 31% and service gross margins were “near breakeven.”
The hydrogen fuel cell system company also signed an agreement with Amazon during the second quarter. The deal covers collaboration on multi-site GenKey deployments and technology and represents about $70 million in revenue for this year.
Plug Power also signed a new agreement with Wal-Mart on proposed deployments of 30 more GenKey sites by the end of 2019. Ten of those sites are set for deployment this year and carry a contract value of about $80 million. The company also negotiated revised terms for the project financing with Wal-Mart for low-single-digit interest rates and the removal of cash restrictions from transactions going forward.
Plug Power affirms guidance
During the third quarter, the company expects to deploy about 10 GenKey sites and almost 3,000 GenDrive units. Plug Power said the third quarter will be the largest in its history, adding that currently, its largest quarter so far has been almost 1,200 units deployed. Management expects a more than 20% increase in the number of GenFuel sites installed and about 18% growth in the number of GenDrive units deployed.
Plug Power also reconfirmed its full-year outlook for GAAP gross revenue of about $130 million and adjusted gross margins of 8% to 12%, excluding impacts from the non-cash warrant charges for the Amazon and Wal-Mart deals. Plug Power also still expects to use between $25 million and $35 million in free cash flow.
After Plug Power Q2 2017 earnings were released, the company’s stock slumped 5.88%, falling to $2.24 per share in premarket trades.