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Earnings Preview: Will the Trump effect translate to Plug Power in Q3?

Hydrogen fuel cell maker Plug Power Inc (PLUG) is expected to post its third-quarter earnings result before the opening bell on Thursday, November 8. Trump’s latest administrative effects are expected to help the company as the US manufacturing sector has picked up on increased capital spending and hiring driven by massive tax overhaul, deregulatory measures, strong domestic economy and robust business sentiment.

Nevertheless, the Street estimates sales of $48.56 million in the quarter for the alternative power company, which is 21% lower than last year’s $61.43 million.

Plug Power’s GenSure E-2200x fuel cell (Courtesy: Plug Power)

Last quarter, Plug Power Inc. (PLUG) posted a loss of $0.12 per share on revenues of $39.9 million, missing estimates — even after it posted an impressive top-line growth vs. a year ago.

This was the same period when the company started shipping its new GenDrive 2440-36R fuel cell system used in Class-2 electric forklifts.

Almost $20 million in total operating expenses affected the bottom-line, and this will also be in focus in the coming results.

However, since the US manufacturing sector has witnessed a resurgence under the Trump administration from how it was last year, we could see this translate to Power Plug. Be on the lookout for expense cuts and tax gains when the results are out on Thursday.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

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