The company did not provide guidance other than to say that it maintains its 2015 forecast of total sales in excess of $100 million, comprised of sales of more than 3,300 GenDrive units and construction of more than 15 GenFuel hydrogen infrastructures. Plug Power projects 2015 bookings to exceed $200 million.
Revenues rose 39% year over year on sales of 888 of its GenDrive units and three hydrogen fueling stations. The company also shipped 396 GenDrive units for which it will recognize revenue in the second quarter.
The big increase in revenues came in service revenue, which rose from $4.4 million in the year-ago quarter to $8.4 million in the second quarter of 2015. Product revenue also rose, but to a smaller degree — $12.6 million a year ago to $15.3 million this year.
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Cost of revenue in the first quarter totaled $22.4 million, comprised primarily of $11.6 million for cost of product revenue and $10.5 million for cost of service revenue. This compares to total cost of revenue in the year-ago quarter of $17.1 million, comprised primarily of $10.4 million for cost of product revenue and $5.9 million for cost of service revenue.
With sales continuing to improve, the company needs to figure out a way to lower its cost of service revenues or to increase those revenues so that service is not a money loser but a money maker. If Plug Power can figure out how to do that and maintain its product revenues, investors may give the company another look.
Plug Power had approximately 6,894 GenDrive units and 15 hydrogen infrastructure sites under service contracts at the end of June, compared with about 5,500 GenDrive units and eight hydrogen infrastructure sites under service contracts at the same point last year.
Consensus estimates for the third quarter call for a net loss of $0.06 on revenues of $29.13 million. Analysts are looking for a full-year net loss per share of $0.24 on revenues of $99.47 million.
The company’s CEO said:
Plug Power is experiencing continual revenue and gross margin expansion. We expect the third quarter to be even better than Q2 2015, with revenues of over $30 million.
That statement claiming that revenues will exceed the consensus estimate should give the stock a boost Thursday. Now the company just has to deliver on that promise.
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Shares of Plug Power were down about 7% in early trading Thursday, at $2.58 in a 52-week range of $2.17 to $6.47. Thomson Reuters had a consensus price target of $3.15 before these results were announced, and the high price target is $3.50.
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