Plug Power Inc. is scheduled to announce its fourth-quarter 2023 financial results on March 1, before the market opens. The company's earnings history has been disappointing, having missed the Zacks Consensus Estimate for the past four quarters, with an average negative earnings surprise of 36.9%. However, expectations are cautiously optimistic for this earnings season.

Plug Power is expected to benefit from its recent acquisitions of Applied Cryo Technologies and Frames Group. These strategic buyouts have strengthened the company's green hydrogen ecosystem and enhanced its ability to offer turnkey electrolyzer solutions. Analysts estimate a 1.5% growth in fourth-quarter revenues compared to the previous quarter, driven by a robust product portfolio consisting of GenDrive, GenFuel, GenSure, and ProGen product lines.

Furthermore, Plug Power's efforts to expand and solidify its global presence through strategic partnerships are predicted to contribute positively to its performance in the to-be-reported quarter. Increased activities related to hydrogen site installations, liquefiers, cryogenic equipment, and electrolyzer stacks and systems are expected to boost revenues from equipment sales and related infrastructure by 6.2% compared to the previous quarter.

The company's customer base expansion is also likely to play a role in revenue growth, specifically from services performed on fuel cell systems and related infrastructure. The Zacks Consensus Estimate suggests a significant jump of 31.8% in revenues from these services compared to the previous quarter.

Despite the anticipated growth in revenues, Plug Power has grappled with rising costs of sales and operating expenses. In the first nine months of 2023, the cost of sales increased by 67% YoY, while total operating expenses jumped by 71.9%. These underlying challenges, coupled with investments in product development and growth initiatives, may have impacted the company's margins and profitability in the fourth quarter.

Additionally, Plug Power's extensive regional presence implies potential risks from unfavorable movements in foreign currencies and geopolitical issues that may have affected its quarterly performance.

However, analysts at Zacks Investment Research remain optimistic about Plug Power's Q4 results. Based on their proven model, which combines a positive Earnings ESP (Earnings Surprise Prediction) and a Zacks Rank of #1, #2, or #3, they predict an earnings beat this time around for Plug Power. The company currently holds a Zacks Rank #3.

In comparison, other companies in the energy sector have also experienced mixed results in their recent earnings releases. Emerson Electric Co., A. O. Smith Corporation, and EnerSys reported varied performances in their respective quarterly financials.

Investors and market participants eagerly await Plug Power's earnings announcement, which will provide valuable insights into the company's financial performance and its prospects moving forward. The Zacks Earnings Calendar can help stakeholders stay updated on upcoming earnings reports.

Disclaimer: The information provided here is based on the mentioned sources and should not be considered as financial advice.