Robust Margins Propel Plug Power (PLUG) to Mixed Q2 Results; Roth Affirms at 'Neutral'

Roth Capital affirms Plug Power (Nasdaq: PLUG) with a Neutral rating and $2.60 price target following mixed Q2 results issued Thursday night.

Analyst Matt Koranda offered the following overall thoughts from the quarter: Despite disappointing revenues, we are seeing positive underlying trends in PLUG’s GMs across both the product and service segments (Q2’15 product GMs of 24.0 percent vs. Q2’14 of 16.9 percent and Q2’15 service GMs of -24.4 percent vs. Q2’14 of -33.8 percent). This was offset, however, by increasing opex, which caused a wider operating loss YoY (-$9.9mn or -41.1 percent EBIT margin vs. Q2’14 of -$6.7mn or -38.3 percent EBIT margin).

While GMs appear to be headed in a positive direction, we continue to await a clearer path toward adjusted EBITDA and net income profitability before becoming more constructive on the stock.

Estimate changes: FY15 revenue from $99 million up to $100.3 milion, gross margin from 6.7 percent to 7.9 percent, and EPS from ($0.22) down to ($0.21).

For an analyst ratings summary and ratings history on Plug Power click here. For more ratings news on Plug Power click here.

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