Benzinga - by Lekha Gupta, Benzinga Editor.
J.P. Morgan analyst Bill Peterson hosted Plug Power, Inc.'s (NASDAQ:PLUG) CFO, Paul Middleton, and discussed the 2024 outlook and progress around hydrogen production.
Plug reiterated guidance to deliver ~15% of its annual revenue in the first quarter, assuming 10%-15% Y/Y growth (implied ~$150 million vs. consensus $186 million), indicating that first-quarter estimates needed to be further down, says the analyst.
The analyst writes that Plug's revenue profile for the year is expected to remain second-half-weighted, given the build-up from material handling customers ahead of the holiday season and new product platforms launching after going through commissioning and qualification earlier in the year.
Related: Plug Power May Be Plagued By Another Challenging Year – Analyst Forecasts Negative Fuel Margins In FY24
The company expects to deploy roughly 300MW-400MW of electrolyzers this year, mainly led by Europe, with additional customer interest beyond this expected to unlock once the PTC guidance is finalized, writes the analyst.
Given a favorable energy contract in place, the company expects to produce hydrogen at $4-$5/kg (pre-PTC) on average and potentially even lower at $3/kg from its future Texas plant, says Peterson.
With 40 TPD of capacity between 3 plants expected by the end of the year coupled with price increases pushed to customers, fuel margins could improve sequentially from second-quarter onwards.
This week, in an exchange filing, the company said it has entered into agreements to exchange existing notes for new convertible senior notes.
Price Action: PLUG shares are trading higher by 0.45% at $3.35 on the last check Friday.
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