Plug Power Inc. PLUG is scheduled to release fourth-quarter 2024 results on March 4, before market open.

The 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 37.4%, on average.

Let’s see how things have shaped up for Plug Power this earnings season.

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Factors to Note Ahead of PLUG’s Results

Demand recovery for the company’s electrolyzers is expected to have driven revenues from the sales of equipment, related infrastructure and others. Also, improving demand for cryogenic storage equipment and liquefiers and fuel cell systems is expected to have aided its sales. The Zacks Consensus Estimate for net revenues from the sale of equipment, related infrastructure and others is $197 million, indicating an increase of 17.3% from the prior-year quarter.

Revenues from fuel delivered to customers and related equipment are expected to have grown 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 $31.5 million, implying a 66.5% increase from the year-ago number.

Revenues from Power Purchase Agreements are expected to have been buoyed by an increase in the average number of units and customer sites party to these agreements.

Plug Power’s fourth-quarter results are also expected to benefit from the acquisitions of Applied Cryo Technologies and Frames Group, which strengthened its green hydrogen ecosystem and enhanced its capabilities to deliver a range of turnkey electrolyzer solutions. 

However, rising 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.

Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.

Amid this backdrop, the Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $257 million, indicating an increase of 15.7% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at a loss of 23 cents per share compared with a loss of $1.07 per share in the year-ago quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for PLUG 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.

Earnings ESP: PLUG has an Earnings ESP of --2.17 % as the Most Accurate Estimate is pegged at a loss of 24 cents per share, which is wider than the Zacks Consensus Estimate of a loss of 23 cents per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: PLUG presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Industrial Companies

Tetra Tech, Inc. TTEK reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.

Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.

Parker-Hannifin Corporation PH reported earnings of $6.53 per share in the second quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $6.22. This compares with earnings of $6.15 per share a year ago.

PH reported revenues of $4.74 billion for the quarter ended December 2024, missing the consensus estimate by 1.2%. This compares with year-ago revenues of $4.82 billion. The company topped the consensus estimate for revenues once in the last four quarters.

Packaging Corporation of America PKG reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.

Sales in the fourth quarter rose 10.7% year over year to $2.15 billion, driven by higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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