Why Plug Power (PLUG) is going up amid missed earnings estimates

Shares of hydrogen fuel cell provider Plug Power (PLUG) has skyrocketed as high as 9% amid missed earnings estimates. However, something else may be a catalyst for pushing this company higher.

The company reported a loss of 12 cents per share with $72M in sales. Wall Street estimated a loss of 8 cents per share with $69M in sales. The thing is that Plug’s 2021 sales are expected to be $465 million, growing to more than $1 billion by 2023 and the company ended its quarter with more than $4.3B on its balance sheet.

Evercore ISI analyst James West wrote in a Tuesday report that he wasn’t concerned with Plug Power’s near-term financials and was taking a longer-term view. He was encouraged by an announcement that Plug is working with General Motors (GM) as well as the progress the company is making on its manufacturing capacity