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Inventory in hydrogen fuel-cell expertise firm
Plug Energy
is falling after the corporate’s third-quarter gross sales fell wanting analysts’ expectations.
Plug Energy inventory (ticker: PLUG) is off 2.5% in after-hours buying and selling, at $39.70. Shares had closed down 0.5% in common Tuesday buying and selling. The
S&P 500
and
Dow Jones Industrial Common
dropped 0.4% and 0.3%, respectively.
Plug reported a 19-cent per-share loss from $144 million in gross sales. Wall Avenue was searching for an eight-cent loss and $145 million in gross sales. Earnings don’t matter as a lot as gross sales for Plug—it’s a high-growth firm.
Administration, nonetheless, raised monetary steering for 2022. It now expects to generate about $913 million in gross sales. Prior steering projected about $838 million in gross sales.
Greater steering is one motive the inventory isn’t down extra after a gross sales miss in after-hours buying and selling. And the inventory isn’t up most likely as a result of shares, as of Tuesday’s shut, have gained about 45% over the previous three months. Shares can dump after a stable earnings report when they’re up that a lot.
And calling the response of Plug inventory to earnings feels practically not possible: It has dropped the day following a report 4 out of the previous eight quarters. It has dropped after earnings beats and earnings misses. It has additionally gained after earnings beats and misses.
Administration feels good concerning the quarter simply reported and highlighted all of the current information from the corporate, together with a hydrogen expertise investor occasion and new Korean partnerships, amongst different issues.
Reactions to earnings matter, however in the long term, they don’t matter all that a lot. Don’t neglect Plug inventory remains to be up about 20% yr to this point, as of the shut, and shares gained 973% in 2020 as buyers grew to become extra bullish concerning the outlook for hydrogen-based transportation applied sciences.
Write to Al Root at allen.root@dowjones.com
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