Plug Power Inc. (NASDAQ:PLUG): Recovers Despite “Wider Than Expected” 1Q14 Net Loss


Dallas, Texas 05/19/2014 (FINANCIALSTRENDS) – Plug Power Inc. (NASDAQ:PLUG) recently posted its 1Q14 earnings on Wednesday, May 14, 2014 and during that day’s trading session the shares lost around 6.6% as it closed at $3.82. This fall in share prices is considered as an investors’ response to wider than expected 1Q14 net loss posted by the company.

Financial Highlights:

The fuel cell maker posted 1Q14 operating loss of $0.06 per share, against the Zacks Consensus Estimate of $0.05 per share. This loss was mainly attributed to higher cost of service revenues as well as higher selling, general and administrative expenses. However, it was significantly better than loss of $0.13 per share reported in the 1Q13. On a GAAP basis, loss was reported at $0.57 per share during 1Q14 as compared to $0.18 per share in 1Q13. This considerable difference between the GAAP and operating loss was mainly due to charges related to the change in fair value of its issued common stock warrants.

Even, Plug Power Inc. (NASDAQ:PLUG) reported 12.5% year over year decrease in its total revenue which was reported at $5.6 million for 1Q14 as compared to total revenue of $6.4 million in 1Q13. However, total revenue beat Zacks Consensus Estimate of $5 million by almost 12%. The year over year decline in total revenue was because of 19.1% decline in product revenues. The total revenue was pretty much within the guidance range of $5 – $6 million issued during 4Q13 earnings release.

R&D expenses for 1Q14 were reported at $1.25 million, higher than R&D expenses of $0.75 million reported in 1Q13. However, the company expects that this investment will help it to come up with more efficient energy solutions.

Stock Update:

Plug Power Inc. (NASDAQ:PLUG)’s stock gained 6.45% on Friday and closed at $4.29. The stock gained 15.32% or $0.57 during past week thanks to positive stock momentum throughout the week, except on earnings release day.

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