Plug Power Squeezes Even More Out of Walmart

Energy

Published: July 29, 2014 1:55 pm

Last Updated: April 28, 2020 3:41 am

Source: Thinkstock

The roller coaster ride also known as Plug Power Inc. (NASDAQ: PLUG) got another lift Tuesday following the company’s announcement that Wal-Mart Stores Inc. (NYSE: WMT) has added 286 fuel-cell powered units to the 1,783 in the company’s original purchase order placed in February. Walmart has added a seventh location to the six in the original contract.

Plug Power said it deployed nearly 300 of its GenKey-powered forklifts in Walmart’s Pottsville, Pa., distribution center in the second quarter, the first of the six sites to receive the units.

Plug Power’s stock is up nearly 140% since the beginning of the year and more than 1,300% in the past 12 months. Another fuel-cell maker, FuelCell Energy Inc. (NASDAQ: FCEL) is up about 65% year-to-date and 95% in the past 12 months. FuelCell Energy said Monday that it will install a fuel cell power plant to generate 2.8 megawatts of electricity in New Haven, Conn., for a subsidiary of UIL Holdings Corp. (NYSE: UIL). The unit will supply electricity to a substation owned by the UIL subsidiary that will then be distributed to customers. A second 2.8 megawatt unit will also be installed in Bridgeport.

The consensus second-quarter revenue estimate for Plug Power is $73.8 million, and analysts expect an earnings per share loss of $0.04, a third less than its $0.06 per share loss in the first quarter. The company also issued 22.6 million new shares of stock in April, which will make the quarterly loss look a little better than it probably is. Shares have had a tough time staying above that $5.50 per share secondary offering price ever since it was made, and the price has never again touched $6.00.

The addition of another site to the Walmart purchase order could be enough to push Plug Power to a breakeven third quarter, given that the consensus estimate for the quarter calls for a loss of just one cent. Who knows how the share price will react to that.

Plug Power’s stock traded up 5.25% in the early afternoon at $5.81 on heavy volume. The stock’s 52-week range is $0.36 to $11.72.

ALSO READ: Plug Power Blogging Its Way to Stock Gains

Smart Investors Are Quietly Loading Up on These “Dividend Legends”

If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.

Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.