Plug Power (NASDAQ:PLUG)
Plug Power (NASDAQ:PLUG) dropped 8.5% in pre-market trading on Tuesday after the company reported a Q1 loss that was more than anticipated and issued a sales projection for FY 2023 lower than analyst forecasts. As a result, Plug Power stock declined.
The net loss for the first quarter increased to $206.6 million, or $0.35 per share, from a loss of $156.5 million, or $0.27 per share, in the same period of the prior year. In comparison, sales increased to $210 million from $141 million.
The net cash outflow caused by operational operations increased to $277 million during the quarter from $210 million a year earlier. Cash and cash equivalents at the end of the first quarter were $1.37 billion, significantly lower than $3.18 billion at the end of the first quarter of 2022.
Plug Power provided an outlook for the fiscal year 2023 sales of $1.2B-$1.4B in a corporate presentation, much lower than the $2.04B analyst average that Bloomberg gathered, as well as a gross margin of $50M-$140M.
According to the shareholder letter that Plug Power stock sent out, the company’s fuel margin continues to be under pressure during the first quarter “due to increased hydrogen molecule cost associated with historically higher natural gas prices and continued supplier disruptions.”
Plug said it investigates numerous low-cost and non-dilutive funding sources. Additionally, the company is finishing the second level of due diligence with the loan program office of the Department of Energy and investigating asset-backed credit facilities offered by banks.
The company stated that it “continues to receive interest from strategic partners and infrastructure funds regarding interest to partner in our hydrogen plants, which could help accelerate our next generation of hydrogen plant development,” adding that related financing decisions will likely occur this year’s H2 period.
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