Plug Power(PLUG) - Get Report shares were unchanged in pre-open trade eon Wednesday as investors digested a weaker than expected earnings report on Tuesday, but a pair of analysts reiterated their ratings on the new Amazon.com partner betting that the fuel cell maker's future remains bright amid growing pains.
FBR Capital analyst, Carter Driscoll, reiterated his outperform rating and told clients in a Wednesday note, "Walmart negotiations cause(d a) weak 1Q, but that doesn't change the story." and "We expect additional multisite orders, primarily from repeat customers, as Plug Power targets greater penetration of existing customers like Walmart, Carrefour Group, Kroger, Daimler, Procter & Gamble, and more."
Analysts at Rodman & Renshaw also kept their rating unchanged, affirming their buy call on the shares and a $4 price target.
"We were a little surprised that guidance was not raised post the Amazon partnership as the company continues to expect $70 million sales to Amazon in 2017. We believe management is being conservative with its outlook and accordingly, we ar5e projecting revenues of $141.1 million for the year, that factors Pro-Gen shipments to China.
Plug Power PLUG shares fell 10% on Tuesday after the firm posted a loss almost twice as large as analysts expected., which last month saw its shares jump handsomely on a partnership agreement with (AMZN) - Get Report , said on Tuesday that it lost 13 cents a share on $15.2 million revenue, while analysts had expected it to lose just 7 cents a share, and revenue of $24.9 million.
The company, which last month saw its shares jump handsomely on a partnership agreement with Amazon, said on Tuesday that it lost 13 cents a share on $15.2 million revenue, while analysts had expected it to lose just 7 cents a share, and revenue of $24.9 million.
The company further confirmed its 2017 confirmed full-year 2017 revenue guidance at $130.0 million and gross margins of 8% to 12%.
"After considering our year-to-date performance and expected results for the remainder of the year, we are reiterating our full-year 2017 guidance metrics. We have good visibility with our current order book and backlog to support our activities for the rest of the year and are focused on further enhancing our performance as the year progresses," the firm said in a press release on Tuesday.
In January Amazon AMZN acquired the right to buy up to 23% of hydrogen fuel cell maker and said it would use the technology to speed up work in its warehouses.
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