Shares of Plug Energy (NASDAQ:) are down greater than 7% in premarket buying and selling Tuesday after the corporate reported Q1 web income that was under analyst estimates.

The Q1 web stood at $140.8 million, up 96% YoY and under the consensus estimates of $146.4 million. Plug Energy reported a Q1 loss per share of 27c, in comparison with a loss per share of 12c in the identical interval final yr and the anticipated loss per share of 16c.

The corporate reiterated its 2025 targets for $3 billion in annual gross sales, 30% gross margin, and 17% working margin.

B. Riley analyst Christopher Souther took word of the miss that was pushed by “larger pure fuel costs affecting the gas enterprise, which ought to proceed in 2Q, however administration sees enchancment in second half.”

“Plug’s strong stability sheet place permits it to give attention to its longer-term purpose of turning into a frontrunner throughout the inexperienced hydrogen ecosystem,” Souther stated in a consumer word.

Susquehanna analyst Biju Perincheril can also be optimistic regardless of the income miss. The analyst reiterated a Optimistic ranking however minimize the worth goal to $30.00 per share from the prior $33.00.

“Margins ought to sequentially enhance, particularly as the corporate’s hydrogen crops come on-line, gross sales ramp for brand new companies, and the corporate enjoys continued outcomes from cost-savings initiatives,” Perincheril informed purchasers.

By Senad Karaahmetovic