|Day's Range||0.2000 - 0.2800|
Revenue of $23.7M , 23% Gross Margin and ($5.0)M Adjusted EBITDA Order Backlog expanded to $211.6M at end-Q2 12-month Order Book increased 66% to $126.7M at end-Q2 VANCOUVER , July 31, 2019 /PRNewswire/ ...
This fuel cell leader is pointing to big things happening in 2020. But what can investors expect from its results for the second quarter of 2019?
Ballard (BLDP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
TSX: BLDP) today announced a purchase order from Wrightbus (www.wrightsgroup.com), a leading bus OEM and Ballard partner headquartered in Northern Ireland , for 15 FCveloCity®-HD 85-kilowatt fuel cell modules to power buses for deployment in Aberdeen, Scotland under the Joint Initiative For Hydrogen Vehicles Across Europe ("JIVE") funding program. The 15 two deck, zero-emission StreetDeck fuel cell electric buses (FCEBs) are 10.9 meters (36 feet) long and can carry up to 64 passengers. All the Ballard modules in this order are expected to ship by end-2019 and the buses are expected to be deployed with First Aberdeen transit agency by end-2020.
TSX: BLDP), a global fuel cell pioneer celebrating its 40th anniversary in 2019, today announced that it has arranged for several Ballard employees to purchase B.C.'s first fleet of fuel cell electric vehicles (FCEVs) from Toyota Canada Inc. (TCI). Ballard employees are expected to purchase the Toyota Mirai zero-emission FCEVs powered by hydrogen in 2019, with initial vehicle deliveries completed today.
Plug Power (NASDAQ:PLUG) stock has performed well year-to-date. The hydrogen fuel cell company has seen its shares soar from $1.24 in January to $2.30 today. Despite the company's many issues (no profitability, dilutive capital structure), investors have high expectations for the company's future prospects.Source: Shutterstock But is PLUG stock a buy?Plug Power talks a good game, but has yet to show tangible results. The company's hype could burn investors if actual results fail to meet expectations.InvestorPlace - Stock Market News, Stock Advice & Trading Tips High Expectations for Q2According to their June 26, 2019 press release, Plug Power is "on pace for the largest second quarter in company history." Plug Power states that fuel cell deployments are set to increase "70% from the second year prior quarter." Sales are "on target to meet full year guidance of $235 to $245 million in gross billings," with "positive adjusted EBITDA" for 2019. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip This is in stark contrast to results from last quarter. In Q1 2019, gross billings were only $22.8 million. Operating cash flows were at $36.3 million. Inventory was up year over year (YoY) from $47.9 million to $65.5 million.The company claims Q1 results are the product of "end of quarter project timing around revenue recognition." Plug Power also notes the seasonality of their business, with two-thirds of sales occurring in the second half of the year.The company's hype of earnings more than a month prior to their release (early August) is a red flag. Speculation, not tangible results, is the current driver of the PLUG stock price. PLUG Stock Investors Have Bought the HypeThe key catalyst for the stock is new product development. Investors have bid up the PLUG stock price, expecting these new innovations to move the needle.Prior to the company's launch of ProGen, the company focused on the materials-handling business. Plug Power's GenDrive line of products provide fuel cells to power forklifts.But with the launch of the ProGen line, investors expect Plug Power to enter an even bigger market: delivery trucks. Plug Power has inked a deal with European electric vehicle maker StreetScooter to provide fuel cell engines for 100 of their vehicles.There's an even bigger potential catalyst that could move the PLUG stock price. There is some speculation that Plug Power could win big if Amazon (NASDAQ:AMZN) decides to purchase ProGen fuel cell engines in conjunction with bringing logistics in-house.As Plug Power's second-largest customer, Amazon already has an involvement with Plug Power. In 2017, Amazon received warrants to buy up to 55.28 million shares of Plug Power stock, in conjunction with Amazon's purchase of GenDrive products for their warehouse operations.But does this equal future Amazon involvement? With the warrants, Amazon has a clear financial incentive to buy fuel cells from Plug Power. But with announced deal, the Amazon rumors remain speculation. Valuation: PLUG Is in Line With PeersPlug Power's main publicly-traded competitors are Ballard Power Systems (NASDAQ:BLDP), and Hydrogenics Corporation (NASDAQ:HYGS). Neither Plug Power nor its competitors generate net earnings, so other sales metrics are needed to do a comparison.Looking at the enterprise value to sales metric (EV/sales), PLUG appears to be fairly valued. The TTM EV/sales ratio for PLUG is 4.82, lower than both BLDP (8.98) and HYGS (8.07).Unlike its competitors, PLUG has shown YoY sales growth (about 50%). BLDP and HYGS have seen sales declines of 22% and 28.8%, respectively. Plug's Capital Structure Could Lead to Shareholder DilutionAccording to Plug Power's last 10-Q filing, the company had 245.4 million outstanding shares. But add in 21.1 million outstanding stock options, 2.37 million restricted shares, 115.8 million warrants, preferred stock convertible into 17.9 million shares, and senior notes convertible into 43.63 million shares, and the number of "dilutive potential common shares" is 200.87 million. This increases share count by about 82%.If Plug Power reaches profitability, the dilutive capital structure minimizes potential upside. Investors should keep this in mind before buying PLUG stock. Bottom Line: Plug Stock More Hype Than OpportunityFuel cell technology will likely remain a niche product, but may gain heavy market share in delivery fleets. This trend could add fuel to the PLUG stock price.Plug Power is moving in the right direction by targeting the electric delivery vehicle market, but needs capital to turn this strategy into profits. The company's capital structure is already potentially dilutive. Future capital infusions could further reduce potential upside for PLUG common stock holders.Investors have bid up Plug Power stock on high growth expectations. But with lack of tangible performance results until August, Plug Power is not a buy today.On the other hand, investors should be cautious trading around Plug Power stock. Given the company's small size (market cap of $569 million), any crumb of "good news" could send PLUG stock price higher.It's tough to "predict the unpredictable." With Plug Power, there are too many questions, and not enough answers.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Don't Believe the Hype Powering PLUG Stock Price appeared first on InvestorPlace.
The fuel cell industry is changing rapidly, with the past 12 months marked by numerous highs and lows. As original equipment manufacturers (OEMs) announced preferences for battery-electric over hydrogen fuel cells, China – the world's largest truck market – accelerated its push into fuel-cell vehicles. Against this backdrop, operating results for Ballard Power System's (NASDAQ: BLDP), a maker of fuel cell systems based in Burnaby, British Columbia, have wobbled.
Plug Power (NASDAQ:PLUG) isn't typically in headlines, except as a cautionary tale about investing in alternative energy. The manufacturer of hydrogen fuel cells once traded in the $1,500 range but PLUG stock collapsed to the point where it is a penny stock.Source: Fedex However, Plug made headlines starting on Wednesday -- albeit self-generated headlines -- with a rare bit of good news. By the time the markets closed on Thursday, PLUG stock price had climbed 3.74% on the day and continued to move in a positive direction in pre-market trading. Plug Power Stock Gets Boost From News of Record QuarterPlug stock took a big hit in May when the company reported Q1 earnings that missed Wall Street estimates, with losses of 15 cents per share. The company is getting ahead of the earnings story this time. Although it's not expected to report its Q2 earnings until August 8, on Wednesday, Plug put out a press release saying it is on track for a record Q2, stating:InvestorPlace - Stock Market News, Stock Advice & Trading Tips"In the second quarter 2019, Plug Power is on track to deploy approximately 2,000 fuel cell units to a variety of new customers and for expansions of many existing customer programs. The deployment volumes equate to an approximately 70 percent increase from the prior year second quarter."The company also states that it remains on target to meet its full year guidance of $235 to $245 million in gross billings -- despite the disappointing revenue miss in Q1. * 6 Worst S&P 500 Stocks of 2019 (So Far) The move appears to have worked. PLUG stock gained 9 cents on Wednesday after the press release hit, and a further 8 cents on Thursday. Continuing a Year of Growth for PLUG StockThe failure of hydrogen fuel cells to replace traditional batteries as electric cars gained in popularity walloped PLUG stock, and it's made it things tough for other companies in that market including Ballard Power Systems (NASDAQ:BLDP). PLUG stock price began a recovery after hitting all-time lows of 94 cents in early 2017. The company announced a contract to provide hydrogen fuel cells to the United States Postal Service. In April of last year, Amazon (NASDAQ:AMZN) announced it would buy up to 23% of the company's shares, and would begin using Plug Power fuel cells for forklifts in 11 of its warehouses. AMZN was expected to spend $70 million in 2017 and double that in 2018. That news alone was enough to cause PLUG stock to skyrocket by 73% with high volume as investors honed in on the action.The company still closed out 2018 down 44% on the year, as losses continued and profit remained elusive.However, Plug Power stock has pieced together a solid run so far in 2019, after a precipitous drop last year saw it collapse from $1.75 at the end of November, to as low as $1.01 before Christmas. The losses continue -- and that disappointing Q1 was a setback for PLUG stock -- but there has been a steady stream of positive news for the company.In April, Fedex (NYSE:FDX) decided to adopt Plug Power fuel cell technology in some of its airport ground support equipment. In May, the company announced a partnership that will see 100 electric vehicles equipped with Plug Power hydrogen fuel cell engines join the DHL delivery fleet in 2020. In June, it announced the acquisition of EnergyOr, gaining access to the market for hydrogen fuel cell technology in robotics and UAVs.Then there was Wednesday's announcement of the record Q2 expected in August. Media is also starting to connect dots, which is working in Plug Power's favor -- at least in terms of visibility and positive news. Yesterday, the Albany Business Review published an article suggesting that a new law passed the previous week by New York state could be a big win for Plug Power. Forcing companies to transition to carbon neutral renewable energy sources for electric power by 2040 means a big opening for hydrogen fuel cell technology.Asked to comment, Plug Power's CEO noted "Anything that drives reduction in greenhouse gas in the transportation sector is good for Plug." He also predicted the New York plan could create a $10 billion market for hydrogen fuel cells and hydrogen-powered vehicles.With Plug Power targeting $235 to $245 million in gross billings for the year, a $10 billion market in its home state would be a big prize. The question is whether and when the company will be able to leverage all of these opportunities and turn them into profitability. * The 7 Top Small-Cap Stocks Of 2019 Investors are growing impatient. But for now, the overall PLUG stock trajectory for 2019 has been upward. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post PLUG Stock Spikes on Predictions of a Record Quarter appeared first on InvestorPlace.