Green-energy provider Plug Power Inc. on Wednesday stuck with its full-year sales forecast, despite fourth-quarter sales missing expectations.
The company — which sells renewable hydrogen fuel and fuel-cell technology that serves electric vehicles, hydrogen-fueling stations and things like cold storage — said it expected 2023 sales of $ 1.4 billion, compared with FactSet estimates for $ 1.36 billion, as its new “gigafactory” begins cranking out hydrogen-production gear.
Plug Power PLUG, -4.44% reported fourth-quarter revenue of $ 220.7 million, a 36% jump from $ 162 million in the fourth quarter of 2021. Analysts polled by FactSet expected a per-share loss of 25 cents, on sales of $ 281.2 million.
Shares declined about 2% in after-hours trading following the release of the results.
The company reported the results as it races to ramp up hydrogen facilities to meet expected demand. Plug Power has been trying to capitalize on a shift toward decarbonization, offering services that produce, transport, store and dispense green hydrogen — via dozens of refueling stations across the U.S.
The company produces green hydrogen via renewable electricity and water. It cites Amazon.com Inc. AMZN, -2.19%, Whole Foods, Walmart Inc. WMT, -1.39% and FedEx Corp. FDX, +0.55% as customers.
Over the past two years, Plug Power has opened or begun building hydrogen plants and other facilities in multiple states. But in January, executives said the fourth quarter was “a tougher quarter than expected,” and that the company’s growth ran into production snags for new products supply-chain hiccups. But they expect improvements in the first quarter.
“We have sites where the hydrogen infrastructure has already been built and ready to go, fuel cells ready to ship,” Chief Executive Andrew Marsh said during a conference call with analysts in January. “But the customers’ construction, in many cases, did not get completed. Though that’ll happen in the first quarter.”
Most analysts tracked by FactSet have a buy rating on the stock. UBS analysts in December said that hydrogen could be “a $ 10 trillion market by 2030, and PLUG aims to be a one-stop shop and market leader in the entire space,” according to Barron’s.
Plug Power stock has slid 42.6% over the past 12 months. By comparison, the S&P 500 index SPX, -0.47% has fallen 8.2% over that period.
