Hydrogen fuel cell company Plug Power Inc (NASDAQ:PLUG) has been in the news for quite a while and on Monday, it emerged as one of the winners of the market. The stock rallied by as much as 15% on Thursday after the company announced a major deal.
A Major Deal
Plug Power announced that it had signed a deal with United Kingdom-based supermarket chain ASDA and is going to provide it with hydrogen fuel cell solutions so as to power the company’s fleet of lift trucks. The lift trucks are an integral part of ASDA’s vast supply chain network and hence, this deal represents a significant coup for Plug Power.
More importantly, the deal is also going to include an order for Plug Power’s full-service Genkey solution and it is going to be installed at ASDA’s facility at Skelmersdale in the United Kingdom. In a statement, the company said that the deal with ASDA is a continuation of Plug Power’s growth in Europe.
Additionally, it is the first deal from Plug Power that is going to see the deployment of its hydrogen fuel technology at scale in the United Kingdom. It added that the deal will also reduce ASDA’s dependence on acid batteries and help the company in moving on to a more environmentally friendly mode of doing business.
The company also released its financial results for the second fiscal quarter today and it proved to be another boost for Plug Power. The company managed to beat analysts’ estimates for its loss per share. Analysts had estimated losses of 9 cents a share.
However, that is not all. The company posted revenues of as much as $68.1 million for the quarter and that comfortably beat analysts’ estimates of revenues of $57.4 million for the quarter. Since the beginning of 2020, the company’s shares have trebled in value and investors could consider putting it in their watch lists. Sign Up below for updates on PLUG and other breakout stocks.