Shares of Ballard Power (TSX:BLDP) jumped on August 10, as the company announced new orders climbed over 100% during the recent quarter.
The fuel-cell maker creates the power behind buses, trucks, trains and more. It continues to see a major climb in its orders for the cells.
What happened?
Ballard Power stock stated in its earnings release that it indeed did see a net loss of US$30.1 million for the quarter. This came as revenue dropped across its heavy-duty mobility portfolio.
Yet this loss was overshadowed by the fact that the company reported US$25.1 million in new orders for the second quarter. This is a major increase from 2022 levels, when new orders came in at just US$12.3 million.
It was a major shift from last year, when management stated that it was an uncertain macroeconomic environment. Shares started to drop for Ballard Power stock, as it was unclear when the environment might shift.
So what?
It looks like that shift is happening now. The company has made several announcements that have pushed the further adoption of fuel cells by companies. Most recently, Ford and Ballard Power stock announced a deal for its heavy commercial truck brand. It is now working on a fuel cell-powered prototype, and this could set up further use of the company by the major car manufacturer.
The company has also announced other deals this year — and not just in North America but Europe as well. Now, management expects “material new orders for our bus customers over the next 12 months.”
“As a result of the increasingly constructive hydrogen policy landscape and increased market activity in the U.S. and E.U., and given the continued hydrogen and fuel cell policy uncertainties and market delays in China, we are accelerating our work on our ‘local for local’ global manufacturing plan and related future capital allocation plans…We expect to conclude this work in early 2024.”
Randy MacEwan, president and chief executive officer for Ballard Power
Now what?
It looks like the next year could be a strong one for Ballard Power stock, but are the numbers there for investors to dive in? Yes.
Shares of the stock may have jumped after solid earnings, but Ballard Power stock is still down by 44% in the last year. It’s now stable with where it started out in 2023, rising 15% in the last month alone.
So, now might be a great time to pick up Ballard Power stock, with shares at just $6.40 as of writing. Those shares could easily double as the company continues to see major orders come in. Meanwhile, as the company surges past analyst estimates for the quarter, I wouldn’t be surprised to see many analysts increase their potential targets for the stock.
Once that happens, there could be another jump in share price for Ballard stock — one that investors won’t want to miss.
