NEW YORK (TheStreet) -- Shares of fuel-cell systems manufacturer Plug Power (PLUG) - Get Plug Power Inc. Report fell 3.98% to $2.78 in morning trading Thursday after the company reduced its sales forecast for 2015.
Plug Power CEO Andy Marsh said Wednesday that the company now expects sales "in excess of $100 million" for the full year 2015, down from an earlier forecast of $130 million. Analysts polled by Thomson Reuters expect sales of $123.7 million.
Plug Power said it reduced the guidance in order to issue numbers on which "people could rely" after the fuel-cell company received "a lot of criticism for under-delivering."
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More than 1.8 million shares had changed hands as of 10:30 a.m., compared to the daily average volume of 6,922,600.
Separately, TheStreet Ratings team rates PLUG POWER INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PLUG POWER INC (PLUG) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly decreased to -$11.09 million or 58.18% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, PLUG POWER INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- PLUG POWER INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PLUG POWER INC continued to lose money by earning -$0.79 versus -$0.94 in the prior year. This year, the market expects an improvement in earnings (-$0.19 versus -$0.79).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 41.2% when compared to the same quarter one year prior, rising from -$15.90 million to -$9.35 million.
- You can view the full analysis from the report here: PLUG Ratings Report