Plug Power Q3 earnings: How will the firm’s outlook after Trump’s election win
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Plug Power (NASDAQ:PLUG) is expected to report its third quarter results on November 12, Tuesday, and investors will look forward to the firm’s outlook, especially after Donald Trump’s win in the presidential election.
The consensus EPS Estimate is -$0.23 and the consensus Revenue Estimate is $210.01M (+5.7% Y/Y).
Last month, Plug Power (PLUG) closed higher after the firm disclosed that Norway’s central bank raised its stake in the company to ~88M shares, nearly 8% of total shares outstanding, up from ~26M shares at the end of Q2.
The company’s shares had slumped after Donald Trump won the U.S. president election, as renewable energy firms could be facing a more challenging environment amid possible policy changes.
“Plug Power stock slumped after Trump’s election win, signaling a tougher environment for green economy stocks due to potential policy changes,” said Seeking Alpha analyst Jonathan Weber.
Despite a significant drop in valuation, Plug Power’s track record of losses, cash burn, and shareholder dilution makes it a risky investment, Weber added.
“The election of Donald Trump poses significant risks to the renewable energy sector, potentially impacting Plug Power’s growth plans,” Seeking Alpha analyst Dilantha De Silva said.
It may take longer than initially expected for Plug Power to reach its full potential, creating more room for things to go wrong, Dilantha De Silva added.
Another Seeking Alpha analyst, Larry Ramer, however, believes the company can benefit as recent news suggests that the number of hydrogen vehicles will grow significantly, boosting Plug Power’s electrolyzer and hydrogen fuel businesses in the long term.
These hydrogen plants will capitalize on the anticipated surge in U.S. hydrogen demand, driving long-term growth for Plug Power, Ramer added.
Last quarter, the firm reported a larger than expected Q2 loss and a 45% Y/Y decline in revenues to $143M, which also missed analyst consensus by a wide mark.
Over the last 3 months, EPS estimates have seen 5 upward revisions and 5 downward. Revenue estimates have seen 1 upward revision and 16 downward.
Shares in the company were down 55.8% since the start of the year.