What happened
Plug Power (PLUG -1.38%) appears poised to end the week on a dour note. Shares of the hydrogen fuel cell specialist plunged Friday morning after management provided a business update and warned investors that the company's top-line growth in 2022 may not be as robust as it had previously expected.
As of 11:57 a.m. ET, shares of Plug Power were down 6.7%.
So what
Originally, Plug Power management had guided for 2022 sales in the range of $900 million to $925 million. However, supply chain disruptions have impaired the company's ability to meet that target. Management now believes revenue will be 5% to 10% lower than the original guidance range.
While that news was disconcerting, management tried to allay investors' concerns, noting that its fuel cell and hydrogen offerings are still highly sought by customers. "While revenue could be lower than previously anticipated in 2022, demand for the fuel cell applications and electrolyzer business remains robust," the company wrote in the update.
Plug Power reported revenue of $502 million in 2021.
Now what
While Plug Power has consistently failed to prove that it can generate a profit from its fuel cell business, investors have held out hope that profitability will arrive in time -- hope that has been fed by the company's success in growing revenue so sharply over the past decade.
PLUG Revenue (Annual) data by YCharts.
In the wake of Friday's update, however, growth investors seem to be losing some confidence in the company's prospects. Those watching from the sidelines who are inclined to consider this sell-off a buying opportunity should wait a little longer and see what additional insights the company provides during its Plug Symposium on Oct. 19.
