Aggressive Q4 ProjectionsĪfter missing Q3 consensus estimates by a mile, Plug Power will require Q4 revenues to increase by at least 75% sequentially to reach the very low end of its recently revised full-year projections. The lack of tangible progress in service margins is also visible in the company's leasing business which the company labels "Power Purchase Agreements" or "PPAs." As accounting rules do not permit upfront loss recognition on service contracts attached to leased equipment, the segment's poor gross margin performance continues to reflect the true state of the company's service business. Adjusted for the release, service gross margins would have been negative 164.1%, essentially in line with last quarter. Please note that in Q3, Plug Power released another $9.6 million from the so-called " loss accrual for services " established last year to reserve for anticipated, massive losses in the service business going forward. Thanks to an improved product mix, material handling product revenues decreased just slightly relative to Q3/2021.Ĭompany SEC-Filings Poor Gross Margin PerformanceĮven when adjusting for $8.6 million in warrant charges mostly related to the recent green hydrogen supply agreement with Amazon ( AMZN), consolidated gross margin showed very little sequential and year-over-year progress. Revenue and earnings per share missed consensus expectations by a mile, while GenDrive shipments decreased by approximately 23% year-over-year and hydrogen infrastructure installations lower by almost 20%. I have covered Plug Power ( NASDAQ: PLUG) previously, so investors should view this as an update to my earlier articles on the company.Īfter the close of Tuesday's session, Plug Power reported just another set of abysmal quarterly numbers as the company's core material handling business remains an unmitigated disaster.
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