There are various signs that point to more of these hydrogen supply agreements being announced in the months ahead. ( WMT) for an option to deliver up to 20 tons per day of liquid green hydrogen to power material handling lift trucks." On April 19, 2022, Plug Power disclosed that it entered into "an agreement with Walmart Inc. One catalyst is new hydrogen supply contract announcements. In the short term, there are two key catalysts to watch for. What Are Plug Power Catalysts To Watch For? Secondly, PLUG mentioned at its Q4 2021 investor call that the company's service business will grow rapidly with the expansion of its green hydrogen network this year and this business segment has the potential to achieve a 30% gross profit margin by next year. Firstly, Plug Power should benefit from positive operating leverage as its revenue grows. But there are two key factors supporting an improvement in profitability for PLUG going forward. On the flip side, PLUG's Q4 2021 GAAP net loss per share of -$0.33 was much wider than the market consensus' bottom line forecast of -$0.11 per share. PLUG noted in the company's Q4 2021 shareholder letter that it "won 16 (electrolyzer) projects in 13 countries to date". Separately, I noted in my prior January 2022 update for Plug Power that "there is a very good chance that PLUG's revenue could surprise on the upside this year (2022), and the key factor is electrolyzer sales." It is encouraging that electrolyzer sales contributed more than 6% of Plug Power's Q4 2021 revenue. This brings PLUG another step closer to achieving its 2025 target of delivering a $3 billion top line. The midpoint of its 2022 top line guidance of $900-$925 million was close to +1% higher than the sell-side's consensus sales estimate (prior to Q4 results release) of $906 million as per S&P Capital IQ. The company generated revenue of $502 million for full-year fiscal 2021. PLUG's fourth-quarter top line came in +3% better than what Wall Street analysts were expecting. Plug Power's revenue expanded by +13% QoQ from $144 million in Q3 2021 to $162 million in the most recent quarter, as indicated in the company's Q4 2021 shareholder letter. PLUG Stock Key MetricsĪs a start, I review the key metrics associated with PLUG's most recent quarterly financial results. As such, I maintain my Buy rating for PLUG. This is because I deem the company's 2025 management guidance and 2026 consensus forecasts to be reasonable based on what I see from the company's current progress in various business areas. In the next five years, I expect robust revenue growth and improving profitability for PLUG. In the current article, I take a longer-term view and assess where I see Plug Power in five years' time, on top of reviewing recent metrics and highlighting near-term catalysts. I touched on the 2022 outlook for PLUG in my earlier article written on January 14, 2022. I continue to assign a Buy rating to Plug Power Inc. JONGHO SHIN/iStock via Getty Images Elevator Pitch
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