Back to top

Image: Bigstock

Beat in the Cards for Plug Power (PLUG) in Q3 Earnings?

Read MoreHide Full Article

Plug Power Inc. (PLUG - Free Report) is set to release third-quarter 2019 results on Nov 7, before market open.

In the last four quarters, Plug Power surpassed estimates twice for as many misses, the average negative surprise being 28.75%. In the last reported quarter, the company’s loss of 8 cents per share was narrower than the Zacks Consensus Estimate of loss of 10 cents.

In the past three months, its shares have returned 29.8% compared with 14.2% growth recorded by the industry it belongs to.



Key Factors

Solid on-road electric vehicle markets, backed by the increased adoption of hydrogen fuel cell electric vehicles, are likely to have strengthened the company’s top line in the third quarter. Also, strength in the other electric vehicle markets beyond material handling, supported by modular designs like ProGen engine and leading technologies, might have augmented its revenues.

Plug Power launched several premium products for warehouses and manufacturing facilities, which are expected to have boosted growth in the quarter. Moreover, the company’s investment in additional capacity and sales channel is likely to have driven revenue growth.

Moreover, the company is benefiting from its recent investment to scale up Technology Access Program (TAP) service. Plug Power completed above 40 TAP projects, which has enabled it to generate record TAP revenues of approximately $1.2 million while receiving orders for more than 40 new projects till June-end. This is likely to have benefited the company in the third quarter as well. Further, it is likely to have gained from its cost-reduction efforts and greater operational efficacy.

However, international operations have exposed the company to risks arising from unfavorable movements in foreign currencies and geopolitical issues, which is expected to have hurt it.

What Our Model Unveils

Our proven model predicts an earnings beat for Plug Power this time around. The combination a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Plug Power has an Earnings ESP of +58.33% as the Most Accurate Estimate is pegged at a loss of 3 cents, narrower than the Zacks Consensus Estimate loss of 7 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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: The company carries a Zacks Rank #2.

Other Key Picks

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

Fortune Brands Home & Security, Inc. has an Earnings ESP of +0.86% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +2.40% and a Zacks Rank of 3.

Welbilt, Inc. has an Earnings ESP of +1.01% and a Zacks Rank #3.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Sealed Air Corporation (SEE) - $25 value - yours FREE >>

Plug Power, Inc. (PLUG) - $25 value - yours FREE >>

Published in