Is Ballard Power Systems a Buy After Its Q2 Earnings?

Ballard Power Systems (NASDAQ: BLDP) reported a 3% year-over-year fall in its second-quarter revenue last week. This was the third consecutive quarter in which Ballard reported a fall in its revenue. But declining revenue isn't the only thing concerning Ballard Power investors right now. Let's take a closer look at Ballard Power's performance in the latest quarter, as well as the outlook for the company and its stock.

The fall in Ballard Power's revenue was primarily due to lower sales in China and a decrease in sales to Plug Power (NASDAQ: PLUG). Declining sales in China is a key concern, and the trend isn't restricted to this quarter alone. Randy MacEwen, President and CEO of Ballard Power, noted in the press release that there are "clear commitments" relating to hydrogen in Europe and the U.S. but "further clarity regarding the China hydrogen and fuel cell policy" is "still to come." China is Ballard Power's key market and accounted for more than half of its total revenue last year. So, weakening sales there is driving down the company's overall sales growth.

Image source: Getty Images.

Source Fool.com