Plug Power said it is on track to achieve its goal of $3 billion in revenue in 2025.
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Shares of Plug Power were rising in late trading as investors expressed cautious optimism over the hydrogen fuel-cell company’s financial forecasts for 2022, even as fourth-quarter losses were wider than expected.
Plug (ticker: PLUG) reaffirmed its 2022 goal of raking in between $900 million and $925 million in revenue, implying 90% revenue growth year over year. The forecast indicated that the figure is likely to be above analysts’ consensus forecast for $905.8 million.
Additionally, the company is on track to meet its 2025 goals of $3 billion in revenue and a 17% operating-income margin, management said in a letter to shareholders posted after the markets closed on Tuesday.
Plug reported a loss of 33 cents a share for its fourth quarter, a wider loss than estimates for 11 cents a share. Revenue was $161.9 million, topping forecasts for $158.1 million.
For the 2021 fiscal year, Plug posted a loss of 82 cents a share on $502.3 million of revenue. Analysts were expecting a loss of 57 cents and $497.4 million in revenue. The company said a number of charges, most of them noncash, weighed on the result.
“Margins in the fuel business continue to remain under pressure,” the company said. “Fuel margins were down on a sequential basis primarily driven by increased hydrogen molecule costs due to higher natural-gas prices and only two months of lower cost fuel production from our plant in Tennessee.”
But in 2022, the company expects a decrease in average molecule costs as the Tennessee plant’s capacity increases and strategic agreements with key suppliers come into effect. The company also believes logistics costs will fall as its production capabilities grow, saying it hopes fuel margins will break even by 2023.
Plug was up around 2% to $25.31 after the market closed on Tuesday. The stock is down 12% this year.
Write to Sabrina Escobar at [email protected]
