What happened
Plug Power (PLUG +3.56%) shares spiked over 10% this morning after the hydrogen and fuel cell system company reported third-quarter earnings last night. That brief pop didn't hold, though, as investors absorbed details from the report. As of 2:45 p.m. ET, Plug Power stock was down 1.2% on the day.
So what
The stock's reversal followed a slew of price target cuts on Plug Power shares by analysts. Oppenheimer slashed its target price by more than half from $63 to $31 per share. New price estimates from Cowen, Susquehanna, and BTIG ranged from $25 to $30 per share, according to The Fly.
Those cuts came after plug reported third-quarter sales of $188.6 million. Though that represented a 31% jump year over year, it was far from Wall Street expectations of $238.1 million. The company recently warned that supply chain issues would cause a shortfall in near-term sales.
NASDAQ: PLUG
Key Data Points
Now what
The fact that costs surged faster than the increase in year-over-year revenue likely helped fuel the bearish outlook on the stock today. Operating losses jumped 62% for the quarter compared to the prior-year period.
Management said the supply chain issues have caused "some larger projects [to] potentially [be] completed in 2023 instead of 2022 due to timing and broader supply chain issues." So it does expect to realize the projected revenue at some point. The company also stressed that it was making good progress on its green hydrogen generation projects.
Even with the price target reduction, with Plug's recent share price below $15, analysts believe there is growth ahead. Investors should remember the hydrogen fuel market is still in its infancy, and any investment should be allocated accordingly.
