The new client announcement of a yet unnamed big box retailer with over 100 distribution centers is enough to put Plug Power Inc. (NASDAQ: PLUG) on the TKO watch list.
The big news gave PLUG shares a modest gain of about 8% over the last week but the accompanying Q1 2015 financial results were a mixed bag that may have kept investors on the sideline.
Plug Power, Inc., a provider of hydrogen fuel technologies, supplies companies with alternative energy fuel cell systems. The new big box retail client has deployed a comprehensive GenKey system to power its material handling fleet in a Toledo, Ohio distribution warehouse. The installation included 177 GenDrive units for the forklift fleet, a hydrogen fuel supply and storage infrastructure, and a maintenance contract.
According to Plug Power, Inc. CEO Andy Marsh, the Toledo Ohio installation and contract keeps the company on schedule to meet its 2015 forecast of total sales exceeding $100 million. “This has provided us with a high level of confidence in meeting this year’s financial projections.” he proclaimed.
The 2015 Q1 financial report showed year-over-year increases of nearly 70% in total revenue and an improvement in overall comparable quarterly profit margins from -41% in 2014 to -22% in 2015. Overall it looks like PLUG is in sturdy financial condition with total cash exceeding $130 million and just over $3 million in debt reported in Q4 2014. With revenues growing all eyes are on PLUG’s profit margins which may be the key for a potential breakout.
Plug Power Inc. (PLUG) is currently trading at $2.63 per share with average 10-day volume reaching 3.8 million shares. The stock is just above a recent 52-week low of $2.32 and below a high of $6.47 a share in August 2014.