Energy stock Ballard Power Systems (TSE:BLDP) (NASDAQ:BLDP) recently turned in its third-quarter earnings report, and the news wasn’t all that great. Investors certainly weren’t happy about the numbers presented, and Ballard fell 2% as a result.
Randy MacEwen, president and CEO of Ballard, noted that Ballard delivered significant achievements throughout its earnings report, including the revelation that the power products line brought in close to 80% of total revenues. Indeed, Ballard brought in $27.6 million for the quarter, and that represented a 29% gain against the third quarter of 2022. Its total operating expenses, meanwhile, came in at $36.3 million, which was a 9% drop against 2022’s third quarter. And the business isn’t likely to fold, either; it’s got $14.8 million in new orders that arrived in the third quarter while delivering $27.6 million.
Indeed, one of those orders came from no less than Canadian Pacific, who will be bringing in another 12 fuel cell engines as part of an ongoing expansion of hydrogen locomotives. Over the last two years, Ballard has brought 38 fuel cell engines to Canadian Pacific, producing a combined total of 7.6 megawatts of power. However, there are some concerns out there about Ballard’s cash burn rate, with some believing that it may burn through its total supply before it can get enough customers like Canadian Pacific shelling out on a regular basis for fuel cell engines and the like.
Is Ballard Power Systems a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on BLDP stock based on three Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average BLDP price target of $6.78 per share implies 94.27% upside potential.
