Plug Power Inc. (PLUG) stock plummeted 6.19% in intraday trading on Monday, following the release of the company's fourth quarter 2024 earnings results before the market open. The fuel cell systems manufacturer missed analysts' estimates for both revenue and earnings per share.
Based on the Q4 earnings preview from Zacks Research, there were concerns heading into the report about Plug Power's rising costs and operating expenses, which were expected to impact margins and profitability. The company substantially underperformed earnings expectations, reporting an adjusted loss of $0.24 per share compared to the consensus estimate of a $0.23 per share loss.
While Plug Power saw growth in revenue from fuel delivery and power purchase agreements, it appears the benefits were offset by continued high labor, raw material, and product development costs. Foreign currency headwinds also likely weighed on profit margins for the company's international operations. Investors reacted negatively to the wider-than-expected quarterly loss amid the challenging cost environment.
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