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Plug Power (PLUG) to Post Q2 Earnings: What's in the Offing?

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Plug Power Inc. (PLUG - Free Report) is scheduled to release second-quarter 2020 results on Aug 6, before market open.

The company delivered weaker-than-expected results twice in the last four quarters, while surpassing and meeting estimates once each. Earnings surprise for the last four quarters was a negative 8.33%, on average. Notably, in the last reported quarter, the company’s loss per share of 12 cents was wider than the Zacks Consensus Estimate of a loss of 10 cents.

In the past three months, shares of the company have surged 119.6% compared with the industry’s growth of 23.3%.

 

 

Factors at Play

The growing popularity of fuel cell engines and hydrogen stations has been benefiting Plug Power over the past few quarters. This is expected to have contributed to its top-line performance in the second quarter of 2020 as well. Also, strength across on-road and stationary power markets along with its efforts to strengthen sales channels are expected to have been beneficial.

Moreover, the company launched several premium products for warehouses and manufacturing facilities, which are expected to have supported its top-line performance in the quarter. Notably, its major product offerings include GenDrive fuel cell systems and ProGen fuel cell engine. In addition, Plug Power is likely to have benefited from its cost-reduction efforts and greater operational efficacy in the to-be-reported quarter.

However, the impacts of the coronavirus outbreak on the supply chain and demand for the company’s products along with the governmental regulations imposed in response to the pandemic are expected to get reflected in its second-quarter results.

Further, international operations have exposed Plug Power to risks arising from unfavorable movements in foreign currencies and geopolitical issues, which are expected to have hurt it. In addition, higher cost of revenues and operating expenses are expected to have been dragging.

The Zacks Consensus Estimate for second-quarter loss per share is pegged at 9 cents, whereas it reported a loss per share of 8 cents in the second quarter of 2019. However, the consensus estimate for revenues of $57 million suggests no change from the prior-year reported figure.

Earnings Whispers

According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Plug Power has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at loss per share of 9 cents.

Plug Power, Inc. Price and EPS Surprise

 

Plug Power, Inc. Price and EPS Surprise

Plug Power, Inc. price-eps-surprise | Plug Power, Inc. Quote

Zacks Rank: Plug Power carries a Zacks Rank #3.

Stocks to Consider

Here are some companies you may want to consider as our model shows that these have the right mix of elements to beat estimates this earnings season:

Graphic Packaging Holding Company (GPK - Free Report) presently has an Earnings ESP of +1.66% and it sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

IIVI Incorporated (IIVI - Free Report) currently has an Earnings ESP of +4.56% and it flaunts a Zacks Rank #1.

Cintas Corporation (CTAS - Free Report) has an Earnings ESP of +2.02% and a Zacks Rank of 2 at present.

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