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Plug Power says it’s on track to meet its goal of $3 billion in revenue in 2025.
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It was rising early Wednesday as investors expressed cautious optimism about the hydrogen fuel cell company’s financial outlook for 2022, even as fourth-quarter losses were larger than expected.
Plug (indicator: PLUG) They reaffirmed the 2022 goal From generating revenue between $900 million and $925 million, which translates to a revenue growth of 90% year over year. Expectations indicated that this figure is likely to be higher than analysts’ expectations of $905.8 million.
In addition, the company is on track to meet its 2025 goals of $3 billion in revenue and an operating income margin of 17%, management said in a letter to shareholders published after markets closed Tuesday.
Blog posted a loss of 33 cents a share in the fourth quarter, which is larger than estimates of 11 cents a share. Revenue was $161.9 million, beating expectations of $158.1 million.
For fiscal year 2021, Plug posted a loss of 82 cents per share, generating $502.3 million in revenue. Analysts expected a loss of 57 cents on revenue of $497.4 million. The company said a number of fees, mostly non-cash, affected the result.
“Margins in the fuel business remain under pressure,” the company said. “Fuel margins decreased on a sequential basis primarily driven by increased hydrogen molecule costs due to higher natural gas prices and just two months of lower cost of fuel production from our Tennessee plant.”
But in 2022, the company anticipates a decrease in average particle costs as the Tennessee plant’s capacity increases and strategic agreements with major suppliers come into effect. The company also believes that logistics costs will do decreases with the growth of its production capacitysaying it hopes fuel margins will level out by 2023.
Delivery shares were up 1.8% in pre-market trading on Wednesday, to $25.30. The stock is down 12% this year.
Write to Sabrina Escobar at [email protected]