Plug Power (NASDAQ: PLUG) stock jumped over 10% on Friday after the company announced it has mitigated the risk of insolvency. However, its 2023 earnings missed expectations.
Plug Power (PLUG) assured investors on Friday that it possesses adequate cash reserves to sustain its operations “for the foreseeable future” and stated that it no longer harbors substantial doubt regarding its ability to operate as a going concern.
This statement comes in contrast to the cautionary note sounded by Plug Power in November, wherein the company expressed concerns that its existing cash reserves and available-for-sale equity securities might not suffice to support its operations over the ensuing year, thus casting doubt on its continuity as a “going concern.”
In a separate filing issued on Thursday, Plug Power outlined its strategy to maintain financial viability, stating that it anticipates its working capital, cash reserves, and the option to direct B. Riley’s purchase of shares directly from the company will provide adequate funding for ongoing operations for a minimum of 12 months.
However, Plug Power’s financial performance for the fiscal year 2023 fell short of expectations. The company reported a loss of $2.30 per share, wider than analysts’ estimates, and its revenue of $891.3 million also failed to meet estimates.
The company attributed its wider-than-expected loss and revenue miss to “evolving market dynamics” and disclosed that it had written down certain assets, resulting in fourth-quarter non-cash charges totaling $325 million.
Plug Power (NASDAQ: PLUG) Stock Reaction
PLUG stock soared 10.20% to close at $3.89 on Friday. The traders had exchanged hands with 77,183,627 (77.18 million) shares compared to the average daily trading volume of 45.34 million.
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