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What to Note Ahead of Plug Power's (PLUG) Q4 Earnings Release?
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Plug Power Inc. (PLUG - Free Report) is scheduled to release fourth-quarter 2023 financial numbers on Mar 1, before market open.
The company has a bleak earnings surprise history, having missed the Zacks Consensus Estimate in each of the preceding four quarters. The negative earnings surprise was 36.9%, on average.
Let’s see how things have shaped up for Plug Power this earnings season.
Factors to Note
Plug Power’s fourth-quarter results are expected to benefit from the acquisitions of Applied Cryo Technologies and Frames Group. With these buyouts the company has strengthened its green hydrogen ecosystem and enhanced its capabilities to deliver a range of turnkey electrolyzer solutions. The Zacks Consensus Estimate for PLUG’s fourth-quarter revenues indicates 1.5% growth from the previous-quarter number.
The company’s strong product portfolio, including GenDrive, GenFuel, GenSure and ProGen product lines coupled with its efforts to expand and strengthen its global presence through multiple strategic partnerships, might have been beneficial in the to-be-reported quarter. Higher activities related to hydrogen site installations, liquefiers, cryogenic equipment, and electrolyzer stacks and systems are likely to have boosted revenues from sales of equipment, related infrastructure and others. The consensus mark for revenues from sale of equipment, related infrastructure and others suggests a 6.2% increase from the prior quarter.
Expanding customer base is likely to have driven revenues from services performed on fuel cell systems and related infrastructure. The Zacks Consensus Estimate for revenues from services performed on fuel cell systems and related infrastructure hints at a 31.8% jump from the previous-quarter figure.
However, escalating cost of sales and operating expenses have been concerns for Plug Power over time. In the first nine months of 2023, its cost of sales increased 67% year over year, while total operating expenses jumped 71.9%. The impacts of high labor and raw material costs are likely to have affected its margin and profitability in the fourth quarter. Also, its investments associated with product development and growth initiatives are expected to have hurt its quarterly earnings.
Owing to its extensive regional presence, risks arising from unfavorable movements in foreign currencies and geopolitical issues might have hurt Plug Power’s quarterly performance.
Our proven model suggests an earnings beat for Plug Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Plug Power has an Earnings ESP of +26.32%.
Emerson Electric Co. (EMR - Free Report) reported first-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $1.22 per share, which surpassed the Zacks Consensus Estimate of $1.04. Earnings increased 56.4% year over year.
The company’s revenues of $4.1 billion beat the consensus estimate of $3.9 billion. The top line increased 22.1% year over year. The stock currently carries a Zacks Rank #2.
A. O. Smith Corporation’s (AOS - Free Report) fourth-quarter 2023 adjusted earnings of 97 cents per share surpassed the Zacks Consensus Estimate of 96 cents. The bottom line jumped 13% year over year.
Net sales of $988.1 million narrowly missed the consensus estimate of $989 million. However, the top line increased 5.6% year over year. The stock currently carries a Zacks Rank #3.
EnerSys’ (ENS - Free Report) third-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $2.56 per share surpassed the Zacks Consensus Estimate of $2.55. The bottom line jumped 102% year over year.
Net sales of $861.5 million missed the consensus estimate of $897 million. The top line decreased 6.4% year over year. The stock currently carries a Zacks Rank #3.
Image: Bigstock
What to Note Ahead of Plug Power's (PLUG) Q4 Earnings Release?
Plug Power Inc. (PLUG - Free Report) is scheduled to release fourth-quarter 2023 financial numbers on Mar 1, before market open.
The company has a bleak earnings surprise history, having missed the Zacks Consensus Estimate in each of the preceding four quarters. The negative earnings surprise was 36.9%, on average.
Let’s see how things have shaped up for Plug Power this earnings season.
Factors to Note
Plug Power’s fourth-quarter results are expected to benefit from the acquisitions of Applied Cryo Technologies and Frames Group. With these buyouts the company has strengthened its green hydrogen ecosystem and enhanced its capabilities to deliver a range of turnkey electrolyzer solutions. The Zacks Consensus Estimate for PLUG’s fourth-quarter revenues indicates 1.5% growth from the previous-quarter number.
The company’s strong product portfolio, including GenDrive, GenFuel, GenSure and ProGen product lines coupled with its efforts to expand and strengthen its global presence through multiple strategic partnerships, might have been beneficial in the to-be-reported quarter. Higher activities related to hydrogen site installations, liquefiers, cryogenic equipment, and electrolyzer stacks and systems are likely to have boosted revenues from sales of equipment, related infrastructure and others. The consensus mark for revenues from sale of equipment, related infrastructure and others suggests a 6.2% increase from the prior quarter.
Expanding customer base is likely to have driven revenues from services performed on fuel cell systems and related infrastructure. The Zacks Consensus Estimate for revenues from services performed on fuel cell systems and related infrastructure hints at a 31.8% jump from the previous-quarter figure.
However, escalating cost of sales and operating expenses have been concerns for Plug Power over time. In the first nine months of 2023, its cost of sales increased 67% year over year, while total operating expenses jumped 71.9%. The impacts of high labor and raw material costs are likely to have affected its margin and profitability in the fourth quarter. Also, its investments associated with product development and growth initiatives are expected to have hurt its quarterly earnings.
Owing to its extensive regional presence, risks arising from unfavorable movements in foreign currencies and geopolitical issues might have hurt Plug Power’s quarterly performance.
Plug Power, Inc. Price and EPS Surprise
Plug Power, Inc. price-eps-surprise | Plug Power, Inc. Quote
What the Zacks Model Unveils
Our proven model suggests an earnings beat for Plug Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Plug Power has an Earnings ESP of +26.32%.
Zacks Rank: Plug Power presently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performances of Other Industrial Companies
Emerson Electric Co. (EMR - Free Report) reported first-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $1.22 per share, which surpassed the Zacks Consensus Estimate of $1.04. Earnings increased 56.4% year over year.
The company’s revenues of $4.1 billion beat the consensus estimate of $3.9 billion. The top line increased 22.1% year over year. The stock currently carries a Zacks Rank #2.
A. O. Smith Corporation’s (AOS - Free Report) fourth-quarter 2023 adjusted earnings of 97 cents per share surpassed the Zacks Consensus Estimate of 96 cents. The bottom line jumped 13% year over year.
Net sales of $988.1 million narrowly missed the consensus estimate of $989 million. However, the top line increased 5.6% year over year. The stock currently carries a Zacks Rank #3.
EnerSys’ (ENS - Free Report) third-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $2.56 per share surpassed the Zacks Consensus Estimate of $2.55. The bottom line jumped 102% year over year.
Net sales of $861.5 million missed the consensus estimate of $897 million. The top line decreased 6.4% year over year. The stock currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.