Shares of Plug Power Inc. experienced a decline during Wednesday’s extended trading session following the announcement of higher losses than what was anticipated by Wall Street for the second quarter.
The company reported a net loss of $236.4 million, or 40 cents per share, compared to a loss of $173.3 million, or 30 cents per share, during the same period last year. Analysts surveyed by FactSet were expecting a loss of 27 cents per share on a GAAP basis.
On the other hand, Plug Power saw an increase in net revenue to $260.2 million from $151.3 million, surpassing analysts’ expectations of $237.7 million.
According to a release by the company, revenue growth was driven by expansion in material handling with pedestal customers, as well as significant growth in cryogenics and liquefaction. Additionally, executives predict that electrolyzer revenue will experience substantial growth in the second half of the year.
Despite the disappointing financial results, Plug Power is optimistic about improving profitability in the second half of 2023 and implementing cost-cutting initiatives through 2024 to boost sales volume.
Since the beginning of the year, shares of Plug Power have declined by 13%, contrasting with the 16% increase in the S&P 500 index.
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