Shares of Plug Power Inc. fell in Wednesday’s extended session after the alternative-energy company saw its losses for the second quarter swell more than Wall Street was anticipating.
The company notched a net loss of $ 236.4 million, or 40 cents a share, compared with a loss of $ 173.3 million, or 30 cents a share, in the year-earlier period. Analysts tracked by FactSet were anticipating a 27-cent per-share loss on a GAAP basis.
Plug Power’s PLUG, -1.47% net revenue increased to $ 260.2 million from $ 151.3 million, while analysts had been looking for $ 237.7 million.
“Expansion with pedestal customers in material handling and significant growth in cryogenics and liquefaction helped drive revenue growth in the quarter,” the company said in a release. Executives expect to see electrolyzer revenue “substantially” rise during the second half of the year.
Despite the revenue beat, however, Jefferies analyst Sam Burwell noted that the company’s negative gross margin of 30% was below his own 14% assumption and the 9% that he said was implied by consensus expectations.
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The stock dropped nearly 6% in Wednesday’s after-hours action.
Plug Power “is evaluating several financing options with counterparties, including but not limited to, the [U.S. Department of Energy] Loan Program, strategic project investment partners, and corporate debt facilities,” the company added in its shareholder letter.
Despite steep losses, executives say the company “has clear short-term goals to improve profitability in the second half of 2023 and position additional cost down initiatives through 2024 as we significantly ramp sales volumes.”
Shares of Plug Power have declined 13% so far this year, as the S&P 500 SPX has added 16%.
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