As one of the latest clean-energy flagbearers to reveal Q3 earnings, Hyzon Motors stock gained over 20% in Friday premarket trading thanks to a positive reaction to the company’s quarterly report. Arguably one of the more risky investments, this is why Hyzon needs a second look.
In general, Hyzon posted relatively strong quarterly earnings – focusing significantly on increasing worldwide traction and global exposure. The company reported total operating expenses of $50.6M with a net income of $32.4M and a diluted EPS of $0.13. Comparing this to Q320, Hyzon reported a net loss of $0.6M and an EPS of nil; outlining promising growth over 2021.
Mr. Craig Knight, CEO of Hyzon, pointed to the promise of global expansion:
“During the third quarter of 2021, the Company generated revenue of $1 million and continues to mobilize its teams across Europe, Asia, and North America to capture the increasing momentum for hydrogen in the commercial vehicle market. As this momentum continues – Hyzon trucks are expected to be on the road in four continents by the end of the year, with two vehicles delivered during the third quarter of 2021.”
Now for clean energy investors, Hyzon might tick a fair few boxes. The buzz around the potential for hydrogen is very real, and hence the investment opportunity is already here. This being said, the technology isn’t quite suitable for widespread commercial use, and hydrogen infrastructure isn’t as commonplace as it needs to be.
Until hydrogen-cella become more affordable and thus more applicable to a genuine environmental change; Hyzon and its competitors will keep treading water, waiting for the tide to change.
Goldman Sachs Analyst Jerry Revich made clear:
“Although we are positive on Hyzon’s technology, we believe the key constraint for the market will ultimately be the pace of the hydrogen infrastructure build-out,”
HYZN stock has entered the Friday market with a gain of 19.4%, trading around the $7.50 mark. Despite Hyzon’s impressive innovation and global footprint, the wider market infrastructure is still somewhat lacking. With an annual loss of 27.5% – Hyzon still has a lot to prove.