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Plug Power (PLUG) to Post Q1 Earnings: What's in Store?

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Plug Power Inc. (PLUG - Free Report) is scheduled to release first-quarter 2020 results on May 7, 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 25.21%, on average. Notably, in the last reported quarter, the company’s loss per share of 6 cents was in line with the Zacks Consensus Estimate.

In the past three months, shares of the company have lost 3.8% compared with the industry’s decline of 25.4%.

 

 

Factors at Play

Plug Power has been benefiting from the growing popularity of fuel-cell engines and hydrogen stations over time. This is likely to have contributed to the company’s top-line performance in the first quarter of 2020 as well. Also, its efforts to leverage its ProGen platform to expand into on-road and large-scale stationary markets are expected to have been beneficial.

Moreover, the company’s partnership with ENGIE is expected to have positively impacted its hydrogen fuel-cell business in the to-be-reported quarter. Also, Plug Power’s investment in additional capacity and sales channel is anticipated to have boosted its top-line performance. In addition, it is expected to have gained from its cost-reduction efforts and greater operational efficacy.

However, headwinds related to forex issues and geopolitical concerns, arising from international operations, are anticipated to have hurt the company’s quarterly performance. Also, higher cost of revenues and operating expenses are expected to have been dragging.

In addition, the impacts of the coronavirus outbreak on the supply chain and demand along with the governmental regulations imposed in response to the crisis are expected to get reflected in the company’s quarterly results.

The Zacks Consensus Estimate for first-quarter loss per share is pegged at 10 cents, indicating an improvement from a loss per share of 15 cents recorded in the first quarter of 2019. However, the consensus estimate for revenues of $32 million suggests a 68.4% increase 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 10 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:

Intellicheck, Inc. (IDN - Free Report) has an Earnings ESP of +66.67% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Axon Enterprise, Inc. currently has an Earnings ESP of +18.31% and a Zacks Rank #3.

Ball Corporation (BLL - Free Report) presently has an Earnings ESP of +1.56% and a Zacks Rank of 3.

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