What happened
Investors in Plug Power (PLUG 0.66%) are having a good week so far. Optimism in the hydrogen fuel cell stock soared ahead of earnings, fueled by rising oil prices that turned the market's focus to alternative fuel technologies like hydrogen and fuel cells.
Plug Power stock extended its gains this morning and rose 2.7% as of 11:10 a.m. ET as the market reacted positively to the company's fourth-quarter numbers and outlook for 2022, released on March 1 after market close.
So what
Plug Power has wrapped up 2021 on a solid note, with its fourth quarter and 2021 revenue hitting record highs. It generated $162 million in revenue in Q4 and $502 million in the full year.
Image source: Plug Power.
Demand for Plug Power's core product, GenDrive fuel cells used primarily in forklifts, remains strong -- the company shipped 3,300 GenDrive units in Q4, up from 2,200 units in Q4 2020. Plug Power also generated revenue from 11 hydrogen infrastructure systems in the fourth quarter.
Plug Power also made some meaningful growth moves in the fourth quarter, including a couple of acquisitions to expand its electrolyzer and green hydrogen businesses.
High costs, though, continue to plague the company, which is why Plug Power is far from profitability yet. Aside from rising input costs like fuel prices, the company's cost of servicing its GenDrive products for existing clients remains high. That explains why Plug Power reported a net loss of $0.33 per share in Q4 versus consensus expectations of a loss of $0.11 a share.
You'd expect a stock to fall if the company misses earnings estimate by such a huge margin, but Plug Power operates in a young yet high-potential industry, and investors in such growth stocks typically place greater emphasis on revenue. Plug Power didn't disappoint there.
Now what
Plug Power reiterated its 2022 outlook and expects to generate revenue between $900 million and $925 million. The company also stuck with its 2025 goal of hitting $3 billion in revenue and generating an operating margin of 17%.
Those are big numbers, and Plug Power's focus on its long-term financial goals even at the cost of profits in the near term gave Plug Power bulls yet another reason today to stay invested.
