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The Q1 net revenue stood at $140.8 million, up 96% YoY and below the consensus estimates of $146.4 million. Plug Power reported a Q1 loss per share of 27c, compared to a loss per share of 12c in the same period last year and the expected loss per share of 16c.
The company reiterated its 2025 targets for $3 billion in annual sales, 30% gross margin, and 17% operating margin.
B. Riley analyst Christopher Souther took note of the miss that was driven by “higher natural gas prices affecting the fuel business, which should continue in 2Q, but management sees improvement in second half.”
“Plug’s robust balance sheet position allows it to focus on its longer-term goal of becoming a leader across the green hydrogen ecosystem,” Souther said in a client note.
Susquehanna analyst Biju Perincheril is also positive despite the revenue miss. The analyst reiterated a Positive rating but cut the price target to $30.00 per share from the prior $33.00.
“Margins should sequentially improve, especially as the company’s hydrogen plants come online, sales ramp for new businesses, and the company enjoys continued results from cost-savings initiatives,” Perincheril told clients.
By Senad Karaahmetovic
