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Reporting dismal Q3 earnings Tuesday, Ballard Power Systems (NASDAQ:BLDP) attributed poor demand reflecting delays in hydrogen fuel cell adoption. Posting a GAAP loss per share of $0.68, the Canadian fuel cell producer missed analyst projections by $0.55. The quarter's total income came out to be $14.8 million, which fell short by $9.7 million and showed a 45% annual decline.
Ballard claims that a larger slowdown in customer demand for hydrogen and proton exchange membrane (PEM) fuel cellsfundamental to the company's expansion plan was the primary cause of the revenue dip. Adoption of hydrogen technology by industry has encountered challenges; delays in infrastructure and regulations have pushed back expected development paths.
Ballard's stock was up 6.8% in premarket trading despite the outcomes since investors seem to be expecting a long-term increase in hydrogen's importance in changes of sustainable energy sources. However, given the evolving market and legislative dynamics, the company's financial results highlight the difficulties of expanding fuel cell technologies.
This article first appeared on GuruFocus.