What happened
Hyzon Motors ( HYZN 0.17% ) stock sank 14.1% within minutes of the market's opening before regaining some ground.
The company released its fourth-quarter and full-year 2021 numbers this morning, and they appeared dismal at first blush, which explains the market's knee-jerk reaction. Shares of the fuel-cell electric truck manufacturer, however, bounced back as investors made note of other important information from the company's earnings report. By 10:45 a.m. ET, Hyzon stock was down just about 2.5%.
So what
Earlier this year, Hyzon said it expected 2021 revenue and margins to be "materially lower than forecast" because of low average selling price due to its product mix.
Image source: Getty Images.
This morning, Hyzon reported revenue worth only $5.1 million for the fourth quarter, but a net loss of $28.6 million, more than double year over year.
During the full year, Hyzon delivered 87 fuel-cell electric vehicles (EVs) worth $19.6 million, of which $13.6 million will be collected over five years.
Hyzon now expects to deliver 300 to 400 vehicles in 2022, with the bulk of deliveries expected in the latter half of the year. As of March 22, Hyzon's backlog value had grown to $287 million, up from only $83 million worth of backlog it last reported in July.
That said, it's important to understand that backlog here only reflects potential revenue and not actual revenue as not all of these are firm orders. In fact, of the $287 million of Hyzon's current backlog, only $63 million constitute firm orders and the remaining are part of nonbinding memorandum of understanding agreements through 2025 that may or may not convert into orders.
Now what
It's unfair to expect a lot out of Hyzon as the company only started delivering its first hydrogen fuel cell trucks in the third quarter. Importantly, Hyzon expects its new fuel-cell assembly plant in Chicago to start this year, which should help the company produce a critical component of fuel cells at low costs.
With Hyzon also ending 2021 with $445.1 million in cash and expecting to deliver hundreds of vehicles this year, investor interest in the languishing stock could finally pick up.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
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March 23, 2022 at 11:19PM
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Why Hyzon Motors Stock Plunged Early Today - The Motley Fool
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