BLDP Stock: From $20.26 To $16.13 (20.38% Decrease) Intraday Explanation

By Amit Chowdhry ● May 4, 2021
  • The stock price of Ballard Power Systems Inc (NASDAQ: BLDP) fell from $20.26 to $16.13 (down 20.38%) during intraday trading. This is why it happened.

The stock price of Ballard Power Systems Inc (NASDAQ: BLDP) fell from $20.26 to a day low of $16.13 (down 20.38%) during intraday trading. Investors are responding negatively to the company’s first quarter results.

These are the highlights from the quarter:

— Total revenue was $17.6 million in the quarter, a year-over-year decrease of 26% or $6.3 million, the result of lower Power Products and Technology Solutions revenue.

— The Power Products platform generated revenue of $9.4 million in the quarter, a decrease of 25% or $2.8 million:

— Heavy Duty Motive revenue was $6.9 million, a decrease of 33% or $3.4 million, due largely to lower product shipments to China;  

— Material Handling revenue was $1.7 million, an increase of 148% or $1.0 million, primarily the result of higher fuel cell stack shipments to Plug Power;

— Backup Power revenue was $0.8 million, a decrease of 39% or $0.5 million due primarily to lower shipments of fuel cell stacks for backup power in Asia.

— The Technology Solutions platform generated revenue of $8.2 million in the quarter, a decrease of 29% or $3.4 million, due mainly to lower amounts earned from the Audi program.  

— Gross margin was 15% in Q1, a decline of 6-points due primarily to lower revenue and a shift toward a lower overall margin product and service revenue mix.

— Cash operating costs increased by 22% to $14.3 million in the quarter, resulting from increased expenditure on research and product development.

— Adjusted EBITDA was ($14.0) million, compared to ($8.8) million in Q1 2020, primarily as a result of the decrease in gross margin, increase in cash operating costs and higher equity loss in the Weichai-Ballard JV.

— Net loss and adjusted net loss were ($17.8) million in the quarter, increases of 36%.

— Net loss per share and adjusted net loss per share2 were ($0.06), increases of 12%. 

— Cash used by operating activities was ($15.7) million, an increase of 56%, reflecting cash operating loss of ($10.3) million and use in working capital of ($5.4) million.

— Cash reserves were $1,270.9 million at March 31, an increase of 600% from the end of Q1 2020 and an increase of 66% from the end of the prior quarter, driven by net $527.3 million of cash raised in the quarter from a bought deal offering. Ballard also made a further capital contribution of $3.0 million to the Weichai-Ballard JV in the quarter.

— During the first quarter, Ballard received $11.8 million in new orders and delivered orders valued at $17.6 million — reducing the Order Backlog by $5.8 million from the prior quarter, ending Q1 at $112 million. 

— The 12-month Order Book was $73.1 million at end-Q1, a decrease of $10.4 million from the prior quarter.

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