How to Approach Plug Power Stock Ahead of Its Q3 Earnings Release?

Plug Power Inc. PLUG is scheduled to release third-quarter 2025 results on Nov. 10, after market close. The Zacks Consensus Estimate for the bottom line is currently pegged at a loss of 13 cents per share on revenues of $170 million.The company’s third-quarter bottom-line estimates have remained stable over the past 60 days. The bottom-line projection indicates an increase of 48% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year decline of 2.1%.Image Source: Zacks Investment ResearchEarnings Surprise HistoryThe company has a bleak earnings surprise history, having missed the Zacks Consensus Estimate in each of the preceding four quarters. The negative earnings surprise is 158.3%, on average. In the last reported quarter, it reported an adjusted loss of 16 cents per share, wider than the consensus estimate of 15 cents.Plug Power Price and EPS Surprise Plug Power price-eps-surprise | Plug Power QuoteEarnings Whispers for PLUGOur proven model does not conclusively predict an earnings beat for Plug Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.PLUG has an Earnings ESP of -2.72% and a Zacks Rank of 2 at present. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Factors to Note Ahead of PLUG’s Q3 ResultsPLUG has been benefiting from increased demand for its GenEco proton exchange membrane (PEM) electrolyzers across the industrial and energy sectors globally. This rising demand is supported by strong policy backing in Europe, where government investments and faster project timelines are promoting the use of green hydrogen.Solid demand for the company’s electrolyzers is expected to have driven revenues from the sales of equipment, related infrastructure and others. Also, improving demand for fuel cell systems and related services and infrastructure is likely to have augmented its sales. The Zacks Consensus Estimate for net revenues from the sale of equipment, related infrastructure and others is pegged at $98 million, almost in line with the previous-quarter number.Its worth noting that, in June 2025, PLUG expanded its partnership with Allied Green Ammonia with a new two-gigawatt electrolyzer project in Uzbekistan. This deal builds on their existing three GW project in Australia that strengthens the company’s position as a leading provider of large-scale hydrogen solutions worldwide.Revenues from fuel delivered to customers and related equipment are expected to have been strong due to an increase in the number of sites with fuel contracts. The Zacks Consensus Estimate for fuel delivered to customers and related equipment net revenues is pegged at $32.5 million.However, a decline in the number of hydrogen site installations has been adversely impacting its results related to the sales of hydrogen infrastructure. Additionally, fewer liquefier projects and a slower rate of progress on the existing ventures are likely to have hurt revenues from the sales of cryogenic storage equipment and liquefiers.Also, high costs and operating expenses have been concerns for Plug Power for some time now. The impacts of high labor and raw material costs are likely to have affected its margin and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance.Nevertheless, PLUG’s Project Quantum Leap is anticipated to have boosted its cash flow and reduced the cash burn rate in the quarter.PLUG’s Price PerformancePLUG shares have surged 66.2% in the past three months compared with the Zacks Electronics - Miscellaneous Products industry and the S&P 500’s growth of 20.6% and 8%, respectively. Shares of the company’s peers, Bloom Energy Corporation BE and FuelCell Energy, Inc. FCEL have also been showing impressive gains of late. Bloom Energy and FuelCell Energy have increased 271.9% and 80.8%, respectively, in the same period.Three-Month Price PerformanceImage Source: Zacks Investment ResearchPlug Power’s ValuationFrom a valuation standpoint, Plug Power is trading at a trailing price-to-earnings ratio of a negative 1.11X against the industry average of 36.44X. In comparison with PLUG’s valuation, its peers, Bloom Energy and FuelCell Energy are currently trading at 760.3X and a negative 1.23X, respectively.Price-to-Earnings (Trailing 12 Months)Image Source: Zacks Investment ResearchInvestment ThesisStrong demand for electrolyzers, a solid pipeline of projects and strategic partnerships are likely to drive Plug Power’s long-term performance. As part of the Project Quantum Leap, it also expects to gain from pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform.Nevertheless, the ongoing challenges, including lower sales of hydrogen infrastructure, negative gross margins and cash outflows, are likely to impact the company’s near-term performance.ConclusionStrong foothold in the green hydrogen market, solid pipeline of projects and strategic market expansions position Plug Power favorably for third-quarter results.With solid growth prospects and signs of recovery in margin performance, PLUG is well-positioned to deliver sustained growth and shareholder value. We believe that the PLUG stock is an ideal candidate for an investor's portfolio addition. You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plug Power, Inc. (PLUG): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Bloom Energy Corporation (BE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks