What in the World Happened to Ballard Power Systems' Revenue?
Fuel cell maker Ballard Power Systems (NASDAQ: BLDP) stock fell nearly 20% after it reported its quarterly results last week. Investors surely had high expectations from the stock, which was getting valued at more than 80 times its sales in January. In fact, the company has set for itself a lofty target of 46% annual sales growth through 2030. Against this backdrop, a 26% year-over-year drop in first-quarter sales understandably upset investors. Let's see why Ballard Power's Q1 sales fell, and what can be expected from the company going forward.
Ballard Power reported revenue of $17.6 million in Q1, which was 26% lower than the year-ago quarter. The company's management cited three main reasons for the drop in revenue. First, last year's comparable quarter was strong due to a large shipment, as well as no impact of COVID-19. So, in comparison, the revenue looked low in the latest quarter. Second, the company's sales historically are tilted toward the second half of the year, while the first half is typically weak.
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Source Fool.com
