Is the Move in Plug Power Sustainable?

Plug Power said that it had strong fuel cell and hydrogen infrastructure shipments and installations during the second quarter of 2015, to the point that it had record sales. The company also said that it is on track to achieve its previously announced 2015 financial targets.

What was attributed to the strong sales was its flagship fuel cell product, GenDrive. This product displaces lead-acid batteries to power electric lift trucks — and it shipped 888 of those GenDrive units during the quarter to customers, versus 419 units in the first quarter of 2015 and 687 units in the second quarter of 2014.

The company further said that it built four new GenFuel sites in the second quarter and that it made construction progress on an additional four hydrogen fueling stations in North America.

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On that guidance, Plug Power said that it is maintaining its 2015 forecast of total sales in excess of $100 million. That is to be composed of over 3,300 GenDrive units being sold and construction of more than 15 GenFuel hydrogen infrastructures. The company projects bookings of more than $200 million in 2015, with approximately 75% coming from repeat customers.

We will not see full details until early August when the company formally reports earnings. Still, this was a double-digit gain, and shares closed on Monday only six cents above its 52-week low of $2.17.

The short interest may be a bit of an influence here, but that short interest is not as strong as it used to be: Plug Power saw its short interest for the June 15 settlement date remain relatively flat at 31.68 million shares. The previous level was 31.11 million. Both of these readings are on the lower end of the short interest range over the past 52 weeks.

Shares of Plug were up nearly 15% at $2.55 on Tuesday afternoon just minutes before the closing bell. Volume was right at 12 million shares, almost five times an average day. The stock has a consensus analyst price target of $3.90 and a 52-week trading range of $2.17 to $6.47.

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Andy Marsh, Plug Power’s chief executive officer, said:

Management set aggressive revenue and operational goals for 2015, and the continued customer acceptance of our products along with the performance of our team has resulted in a record revenue quarter that is right in line with these goals. Plug Power continues to lead the industry with innovative and groundbreaking solutions that really help customers increase productivity and save money.