Plug Power Inc (NASDAQ:PLUG) fell sharply upon the release of its earnings report for the third quarter, which disappointed on both earnings and revenue.
Shares were down 11.27% yesterday to $1.26 on volume of 6.42 million, nearly 4X the stock’s average volume.
Technically, on the weekly chart, the stock has now broken through the previous lows of $1.33 and $1.29, indicating the potential for further downside.
Investors should note that Plug touched a low of $0.22 in March 2013.
Plug Power Inc (NASDAQ:PLUG) misses in Q3
For its third quarter, Plug reported EPS of $-0.07, which missed by $0.02, and revenue of $17.56 million, which missed by a huge margin of $17.28 million and was down 44.1% year on year.
“Plug Power is executing on a balanced strategy of delivering sustainable returns within the material handling space while beginning to unearth new market opportunities to maintain our position as a global market leader in fuel cell technology,” said Andy Marsh, CEO of Plug Power.
The company had total cash of $88.4 million, including cash and cash equivalents of $42.5 million and restricted cash of $45.9 million as at September 30.
Plug Power Inc (NASDAQ:PLUG) conference call
Company CEO Andy Marsh participated in the earnings call from China.
“Moving on to the future Plug Power, I have a pleasure speaking to you today from just outside of Shanghai, China, which represents a major long-term market opportunity for Plug Power,” he said on the call. “While we remain focused on the near-term goal of maintaining our growth rate and reaching sustained profitability by applying our technology within the Material Handling segment, we must continually explore new market opportunities in order to both maintain our industry-leading position in fuel cell technology and unlock the massive opportunity for long-term growth.”
The company is focused on China because it has the potential to be the largest mobile fuel cell market in the world in the coming years.
“We can enter the market with a technology and cost structure advantage that’s not matched by anyone else,” said Marsh.