Fuel Cell Leaders Set To Report, As Senate Approves Climate Bill

Fuel Cell Leaders Set To Report, As Senate Approves Climate Bill

Hydrogen fuel cell stocks Plug Power (PLUG) and Ballard Power Systems (BLDP) spiked Monday. The U.S. Senate approved a sweeping spending bill over the weekend which would direct billions of dollars toward clean energy projects. Both companies are set to report quarterly results this week.




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The Senate passed the proposal, titled the Inflation Reduction Act, along a party-line vote on Sunday. The legislation includes around $370 billion in funding and programs to accelerate the buildout of green energy infrastructure across the country. If signed into law, the bill aims to boost the U.S. solar industry, electric vehicle manufacturers and other clean energy sectors.

What’s In the Bill

Among the legislation’s provisions is more than $9 billion for the federal procurement of American-made clean technology. It also includes $3 billion for the U.S. Postal Service to purchase zero-emission vehicles. The bill also figures in tax credits and grants of unspecified amounts for states and municipalities employing clean fuels and commercial EVs in public transport.

Another key part of the package includes tax credits for clean hydrogen and clean energy manufacturing, with specific amounts for photovoltaic cells and wind turbine blades. There is $60 billion for clean onshore energy production and around $30 billion in production tax credits to accelerate U.S. manufacturing of solar panels, wind turbines and batteries.

There is roughly $30 billion in targeted grants and loan programs for states and electric utilities to accelerate the transition to clean electricity. The package also includes up to $20 billion in loans to build new EV factories and $2 billion in grants to overhaul existing auto plants to make electric vehicles.

Hydrogen Fuel Cell Stocks: PLUG Earnings

Estimates: Analysts predict Plug Power to report a net loss of 20 cents per share and $161 million in revenue in Q2.

Earnings: Check Tuesday after the market closes. PLUG stock retook support at its 40-week moving average last week, on the heels of a powerful three-week advance. It is well below recent highs, but could be forming a bottoming base.

PLUG shares were up 1.7% to 25.62 at the close of Monday’s market trading.

Plug Power stock went public in 2002. Based in Latham, N.Y., Plug Power supplies hydrogen fuel cells mainly for forklifts in large warehouses. Its fuel cells replace conventional batteries in equipment and vehicles powered by electricity. Plug Power clients include retail giants Amazon (AMZN), Walmart (WMT), Nike (NKE) and Home Depot (HD).

The company is looking to produce more than half of its hydrogen energy from entirely renewable sources by 2024. It also aims to branch out from forklifts to heavy-duty vehicles to serve ports in the U.S. and Europe, as well as stationary fuel cells to power data centers and distribution hubs.

In the first quarter, PLUG reported a loss of 27 cents a share, lower than expectations for a 16-cent loss. Revenue rose 96% to $140.8 million, but it also missed forecasts for $144.8 million.

PLUG stock has a 69 Composite Rating out of 99. It has a 89 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 18.

Hydrogen Fuel Cell Stocks: Ballard Power Systems Earnings

Estimates: Wall Street is forecasting a net loss of 12 cents per share and $24.6 million in revenue in the second quarter.

Results: Check Wednesday morning.

The Canada-based Ballard Power Systems focuses on developing fuel cells for commercial vehicles. This includes buses, trucks, trains, ships and boats as well as stationary power units. Like Plug Power, Ballard is betting big that hydrogen will be a key part of the global energy transition away from fossil fuels.

BLDP stock increased 1.25% to 8.88 Monday.

Ballard missed on estimates in Q1 with a loss of 14 cents per share and sales of $21 million in. Analysts predict Ballard will report a loss of 52 cents per share in 2022 on $110.3 million in revenue.

“We ended the quarter with strong cash reserves of $1.1 billion, which enables us to execute our growth strategy,” CEO Randy MacEwen said after the first quarter.

“We are confident investing ahead of the curve will position the company for significant market share as the adoption of hydrogen accelerates over the coming years,” he added.

Ballard has a Composite Rating of 30. It has a 27 Relative Strength Rating and a EPS Rating of 2. While both fuel cell stocks are sitting on strong three-week advances, Ballard remains down 78% from a February, 2021 high.

Please follow Kit Norton on Twitter @KitNorton for more coverage.

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