What: Shares of hydrogen technology provider Plug Power Inc. (NASDAQ:PLUG) jumped as much as 16% today after announcing fourth-quarter earnings.
So what: Revenue jumped 78.6% from a year ago to $38.4 million, coming in ahead of the $35.5 million analysts were expecting. GenDrive units recognized in the quarter jumped from 719 a year ago to 1,256.
On the downside, net loss more than tripled to $25.2 million, or $0.14 per share, partly due to writedowns on service contracts because of faulty products. Adjusting for these one-time items, the company lost $0.05 per share, which is what Wall Street expected.
Now what: Growth is coming along nicely for Plug Power, but there's still no sign the company is going to turn a profit in the near future. That's what has me concerned today, despite the strong top-line results. Management also recently took out a $30 million loan to help fund future growth. That leaves the company with a strong cash position, but until Plug Power can prove it can generate cash from operations, rather than burn it, I would approach this stock cautiously.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.