Plug Power Inc Q1 Earnings Preview: What To Expect?

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Plug Power Inc (NASDAQ:PLUG) is undoubtedly one of the most volatile stocks of 2014. The fuel cell technology company will report its fiscal first quarter results on Wednesday, May 14 before the market opens. The Latham, New York-based company has never reported profits since its 1999 IPO. Plug Power said in December 2013 that it will have to ship 3,000 units this year to reach EBITDA break-even.

Plug Power’s losses expected to narrow

Analysts expect Plug Power Inc (NASDAQ:PLUG) to report revenues of $5.35 million, down 17% from $6.44 million in the same quarter a year ago. The company is expected to suffer a net loss of 5 cents, compared to a loss of 14 cents a share in the corresponding quarter of 2013. For the full-year, analysts forecast a net loss of 9 cents, much better than last year’s loss of 34 cents per share. But revenues are expects to jump 144.4% to $65 million. Investors and analysts have expressed mixed views on Plug Power in the past few months. Though analysts have narrowed their FY2014 loss estimates by 20%, they have cut the FY2015 profit guidance by more than 50%.

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Plug Power Inc (NASDAQ:PLUG) last week won an order for 182 GenDrive fuel cell units for Central Grocers Inc. The order also includes a 5-year GenCare service contract. Including Central Grocer’s orders, Plug Power said it has already received $60 million of orders, and was expecting to reach bookings of $150 million by the end of this year. The company’s Q4 results were optimistic, registering a 36% jump in revenues. Plug Power forecasts to earn its first ever profit in the fourth quarter of 2014.

Will Plug Power address concerns raised by short-sellers?

In its first quarter results, look for how Plug Power Inc (NASDAQ:PLUG) addresses concerns raised by short-sellers. And how it plans to get its future bookings. Plug Power will have to convince potential customers that its combination of cost and convenience is much better than rivals. The company is aggressively seeking opportunities. It has signed a deal with Hyundai Hysco to produce and market its fuel cells in Asia. Notably, Asian countries such as Japan and China have been more receptive to the hydrogen fuel cell technology.

Plug Power Inc (NASDAQ:PLUG) shares surged 12.82% to $4.40 at 10:40 AM EDT on Tuesday.

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