Shares of Ballard Power Systems (NASDAQ: BLDP) faced a pre-market plunge of 7.51% on November 5, 2024, following the company's release of its third-quarter 2024 earnings results. The fuel cell manufacturer reported a significant impairment charge on its property, plant, and equipment, as well as an impairment charge on goodwill, which weighed heavily on its financial performance.
According to the earnings report, Ballard Power recorded a $106.8 million impairment charge on its property, plant, and equipment, and a $40.3 million impairment charge on goodwill. These non-cash charges are typically recognized when the company determines that the carrying value of its assets exceeds their fair value, indicating potential issues with the company's operations or future prospects.
Furthermore, Ballard Power missed analysts' expectations for both earnings per share (EPS) and revenue in the third quarter. The company reported a loss of $0.68 per share, significantly missing the consensus estimate of a $0.13 loss per share. Revenue for the quarter came in at $14.8 million, falling short of the expected $23.6 million, representing a 46.3% decrease compared to the same period last year.
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