Hydrogen fuel cell technology provider Plug Power (NASDAQ: PLUG) Shares have been scorched traded down (-44%) this year.Leading turnkey synthesis hydrogen fuel cell (HFC) solutions provider shares rise clean energy and Environmental, Social and Governance The hype peaked at $75.49 in January 2021 before falling to $12.70 in May 2022. rising energy Costs bring more focus on clean and renewable energy energy options. May 17, plug power Announced a 1 GW contract with H2 Energy Europe to build a hydrogen production complex in Denmark that is planned to be the world’s largest electrolyser installation by capacity. The company has laid out plans to eventually reduce the cost of its services by 45% by deploying its green hydrogen network. Cautious investors looking for an investment in the clean hydrogen fuel cell space can watch for an opportunistic pullback in Plug Power stock.
Fiscal 2022 First Quarter Earnings Release
On May 9, 2022, Plug Power released its first quarter fiscal 2022 results for the quarter ended March 2022. The company reported an earnings per share (EPS) loss ($0.27), excluding non-recurring items, that missed analysts’ consensus estimate for a loss (-$0.16), by (-$0.11). Revenue rose 95.7% year over year to $140.08 million, missing analysts’ consensus estimate of $143.99 million.
Conference Call Takeaway
Plug Power chief executive Andrew March noted challenging macroeconomic conditions due to inflationary pressures and supply chain disruptions. He noted that the future of Plug is not based on the current economy, but on the future. He boasted that the $10 trillion green energy opportunity is expected to grow by 80 percent annually. The company has committed to book 1 GW of electrolyzers this year. Performance is scalable to meet and exceed targets. The gross profit margin of GenDrive products exceeds 30%. The cost of new products will continue to decline as the company goes through a 25 percent learning curve for traditional electrolyzers and fuel cells. Following the deployment of its green hydrogen network, service and learning is being implemented to reduce service costs by 45%, of which 70 tonnes will be ready by the end of this year. The cost will be only one-third of what it is now. The company signed a memorandum of understanding with Olin Corporation to remove some of its by-product hydrogen. CEO March believes this relationship will be a key factor in building its hydrogen network in the United States. Oilon has a waste stream of more than 350 tons of hydrogen per day. The cost equates to less than $0.02 per kWh. The company hopes to achieve $3 billion in revenue, 20% EBITDA and 17% operating income by 2025. He concluded: “This is the formula for success. We are building a category king, with a clear strategic and tactical plan, and a great workforce that is unmatched in the industry. I’ve never felt more aligned between our strategy and strategy. Positive. The tactical plan I feel today.”
PLUG Opportunity Pullback Level
use Rifle Chart The weekly and daily time frames provide a precise view of the PLUG stock pattern.Rifles bottomed out near $12.67 on the weekly chart Fibonacci (fib) levels. The weekly rifle chart downtrend’s 5-period moving average (MA) resistance is at $16.88 as it approaches the weekly 200-period SMA support at $15.40, followed by the falling 15-period SMA support at $21.91. The weekly lower Bollinger Band (BB) is $11.78. The weekly Stochastic is stuck at the 20 band.weekly Market Structure Low (MSL) Buying triggers a break above $17.20. The daily rifle chart uptrend has begun to break down as the daily 5-period SMA begins to drop towards the 15-period SMA at $17.44. The daily lower BB is at $13.48 as Stochastic formed a mini inverse puppy below the 80 band. The daily ceiling BB is at $20.53 and the 50-period MA falls to $20.95. Cautious speculators can watch for opportunistic pullback levels at the $15.50, $14.25, $12.67, $12.00, $10.89, $10.06, $9.43, and $8.03 price levels. The upside trajectory ranges from $20.17 to $25.59.