What's in the Offing for Plug Power (PLUG) in Q2 Earnings?
Plug Power Inc. PLUG is scheduled to release second-quarter 2022 financial numbers on Aug 9.
The company has a bleak earnings surprise history, having missed the Zacks Consensus Estimate in each of the preceding four quarters.
Let’s see how things are shaping up for Plug Power this earnings season.
Plug Power, Inc. Price and EPS Surprise
Plug Power, Inc. price-eps-surprise | Plug Power, Inc. Quote
Factors to Note
PLUG’s second-quarter performance is likely to have been affected by high commodity costs and supply-chain disruptions, including increase in logistics, procurement and manufacturing costs.
High natural gas prices are expected to have impacted Plug Power’s margin performance in the second quarter.
Benefits from acquired businesses, including the buyout of Joule Processing in January, and increase in hydrogen installations are likely to have driven revenues from sales of fuel cell systems, related infrastructure and equipment. The Zacks Consensus Estimate for net revenues — sales of fuel cell systems, related infrastructure and equipment in the second quarter indicates a 17.4% increase from the first quarter 2022 reported number.
Expanding customer base is expected to have supported revenues from services performed on fuel cell systems and related infrastructure. The consensus mark for net revenues — services performed on fuel cell systems and related infrastructure in the second quarter suggests a 16.7% rise from the last-reported quarter’s figure.
Revenues from fuel delivered to customers and related equipment are likely to have benefited from increased number of sites with fuel contracts. The Zacks Consensus Estimate for net revenues — fuel delivered to customers and related equipment hints at a 27% jump from the first quarter of 2022 reported number.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Plug Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Plug Power has an Earnings ESP of -11.68%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Plug Power carries a Zacks Rank #4 (Sell).
Highlights of Q1 Earnings
Plug Power incurred an adjusted loss of 27 cents per share, wider than the Zacks Consensus Estimate of a loss of 16 cents. The amount of loss widened year over year. The company’s revenues of $140.8 million missed the Zacks Consensus Estimate by 9.51%. The top line increased year over year.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Helios Technologies HLIO has an Earnings ESP of +0.57% and a Zacks Rank #3. The company is slated to release second-quarter 2022 financial numbers on Aug 8.
The Zacks Consensus Estimate for Helios Technologies’ second-quarter earnings has remained steady over the past 60 days. HLIO has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being approximately 29%.
MRC Global MRC has an Earnings ESP of +10.35% and a Zacks Rank #1. The company is set to release second-quarter 2022 results on Aug 8.
The Zacks Consensus Estimate for MRC Global’s second-quarter earnings has been revised upward by 31.8% in the past 60 days. MRC’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while meeting estimates in one. The average surprise was 140.8%.
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