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PLUG Gears Up to Post Q3 Earnings: What Lies Ahead for the Stock?

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Plug Power Inc. (PLUG - Free Report) is scheduled to release third-quarter 2024 results on Nov. 12, 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 48.1%, on average.

Let’s see how things have shaped up for Plug Power this earnings season.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Factors to Note Ahead of PLUG’s Results

Weak demand for the company’s GenDrive units, electrolyzers and hydrogen infrastructure is expected to have hurt revenues from the sales of equipment, related infrastructure and others. Also, lower sales of cryogenic storage equipment and liquefiers and fuel cell systems are expected to have been spoilsport. The Zacks Consensus Estimate for net revenues from the sale of equipment, related infrastructure and others is $145 million, flat with the prior-year quarter.

However, revenues from fuel delivered to customers and related equipment are expected to have grown due to an increase in the number of sites with fuel contracts. The Zacks Consensus Estimate for fuel delivered to customers and related equipment net revenues is pegged at $20.9 million, implying a 7.7% increase from the year-ago number.

Revenues from Power Purchase Agreements (PPA) are expected to have been buoyed by an increase in the average number of units and customer sites party to these agreements.

Plug Power’s third-quarter results are also expected to benefit from the acquisitions of Applied Cryo Technologies and Frames Group, which strengthened its green hydrogen ecosystem and enhanced its capabilities to deliver a range of turnkey electrolyzer solutions. 

It’s worth noting that escalating costs of sales and operating expenses have been concerns for Plug Power for some time now. The impacts of high labor and raw material costs are likely to have affected its margin and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance.

Owing to its extensive regional presence, risks arising from unfavorable movements in foreign currencies and geopolitical issues are likely to have hurt Plug Power’s performance.

Amid this backdrop, the Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $208 million, indicating a decrease of 4.5% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at a loss of 24 cents per share compared with a loss of 47 cents per share in the year-ago quarter.

Plug Power, Inc. Price and EPS Surprise

Plug Power, Inc. Price and EPS Surprise

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

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for PLUG 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 not the case here, as elaborated below.

Earnings ESP: PLUG has an Earnings ESP of -3.69% as the Most Accurate Estimate is pegged at a loss of 25 cents per share, which is wider than the Zacks Consensus Estimate of a loss of 24 cents per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: PLUG presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Industrial Companies

Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.

John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.

Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.

A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.

Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.


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