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Plug Power's stock falls as losses dwarf revenue

By Emily Bary

Sales decline sharply and come up short of expectations

Plug Power Inc. missed expectations by a wide margin with its latest quarterly results, while racking up losses far greater than the company's revenue total.

The company on Thursday posted a first-quarter net loss of $295.8 million, or 46 cents a share, compared with $206.6 million, or 35 cents a share, in the year-earlier period. Analysts were expecting a 33-cent loss per share.

During the first quarter, Plug Power (PLUG) wrote down some assets, leading to roughly $40 million in non-cash charges booked in the period, and it also saw about $6 million in restructuring expenses.

Plug Power's revenue fell to $120.3 million from $210.3 million a year before. The FactSet consensus was for $156.7 million. The revenue figure reflects "reflect seasonality in our equipment sales and timing impacts from electrolyzer deployments," Plug Power said in its earnings release.

The stock was down about 7% in premarket action.

The company added in its release that it reduced its net cash used in operating activities and capital expenditures by 38% on a sequential basis and 42% from a year earlier, "with incremental improvement expected as internal hydrogen supply and pricing increases make an impact in coming quarters."

The company is continuing to focus on inventory reduction this year as it looks to manage its cash position.

"As we enhance our financial performance in the upcoming quarters, Plug is set to retain its leadership role in advancing the hydrogen economy, which is anticipated to experience swift expansion and widespread adoption globally in the future decades," Chief Executive Andy Marsh said in the release.

Plug Power noted that it's waiting on conditional approval for a Department of Energy loan facility to help it expand its network.

-Emily Bary

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05-09-24 0724ET

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