A Tale Of Two Hyzons
Great Ones, it was the best of times. It was the worst of times.
It was the age of in-line earnings. It was the age of earnings misses. It was the epoch of soaring revenue. It was the epoch of missed revenue. It was the season of growth. It was the season of withering.
For hydrogen fuel-cell powertrain manufacturer Hyzon Motors (Nasdaq: HYZN), it was all of these things, apparently. As is typical with Wall Street, it just depends on whom you ask…
This morning, Hyzon released its fiscal fourth-quarter report, and HYZN stock is taking a beating.
Now, first and foremost, Great Stuff Picks readers: Don’t Panic.
I wish I could emboss that in large gold letters on the front of Great Stuff’s cover … just like The Hitchhiker’s Guide to the Galaxy.
The rest of the market has been highly susceptible to panic-selling lately, and I don’t want that to be you.
Let’s look at where the confusion is coming from with Hyzon Motors.
First, the numbers:
• Per-share earnings: Loss of $0.12 versus a loss of $0.08 last year.
• Revenue: $5.09 million versus $0 in revenue last year.
You’ll notice that I didn’t include “expectations” in those bullet points like I usually do. That’s because “expectations” are a bit up in the air.
For instance, Seeking Alpha reports that Hyzon missed earnings expectations by $0.05 per share. Elsewhere, MarketWatch reports that Hyzon missed by just $0.01 per share. Finally, StreetInsider reports that Hyzon actually matched earnings expectations.
Then we have revenue. Seeking Alpha says revenue missed by $23.26 million. MarketWatch says Hyzon’s revenue missed by $16.3 million, and StreetInsider didn’t even give a revenue estimate.
Can y’all just get your $#!t together, please?
The problem with following analysts on bleeding-edge, disruptive companies like Hyzon Motors is that hardly anyone covers the stock. Yahoo Finance reports that only seven analysts have bothered to issue ratings or price targets on Hyzon. I’d wager even fewer bothered to issue earnings expectations.
In other words, HYZN stock is falling today because a handful (and that’s being generous) of analysts set their targets higher than the company forecast.
Given that only seven analysts follow Hyzon shares, and that fewer than that likely issued earnings estimates, HYZN is probably down because Bill over at WeAreAnalystRatings still thinks about the Hindenburg when he thinks of hydrogen … or something like that.
So, what … Mr. Great Stuff? Are you saying we should just ignore analysts all together and just listen to you? Pshaw … right.
No. I’m telling you to look at the numbers! (The numbers, Mason! What do they mean?!)
Last year, Hyzon had no revenue at all. Now it has $5.09 million in revenue for the fourth quarter. That’s growth in a hydrogen market a lot of people — even some Great Ones — don’t think exists.
What’s more, because Hyzon is still growing, the company now has a backlog of $287 million. That’s up a whopping 246% from Hyzon’s last orders update in July 2021.
Furthermore, Hyzon said it delivered 87 fuel-cell electric vehicles (EVs) last year … topping both Hyzon’s and analysts’ expectations.
And this year? This year, Hyzon sees deliveries skyrocketing three- to four-fold, with 300 to 400 fuel-cell EVs to be delivered in the latter half of 2022.
Additionally, Hyzon is rolling out 10 to 15 fuel-cell trucks for demonstration deployments in the U.S. and will begin production of its flagship hydrogen fuel cells in the U.S.A.
“Made In The U.S.A.” hydrogen fuel cells. How do you like them apples?
And if all that wasn’t enough, Hyzon is ramping up deliveries and streamlining assembly processes for overseas customers in Europe, Australia and China.
That’s where that $78.5 million in R&D operations costs went last quarter. It’s a little thing we like to call “growth.” And considering that Hyzon had no revenue in the year prior, and $5.09 million in the fourth quarter … Hyzon spending money to make money is working.
So, Great Ones, if y’all want to listen to Bill over at WeAreAnalystRatings and sell your HYZN stock or avoid it altogether, that’s fine. It’s your money, I don’t have to tell you what to do with it, and you don’t have to listen.
I have to admit that I’ve been tempted to sell HYZN stock out of the Great Stuff Picks portfolio … but only so that I could buy the shares myself.
You see, the SEC won’t let me own any of the stocks I recommend. So, you know I’m not pumping HYZN for my own good. I don’t play those games.
No, Great Stuff Picks will continue to hold HYZN stock with strong, hydrogen-powered hands. Heck, at these prices, you should probably add to your HYZN position.
After all, even Wall Street knows that Hyzon has potential beyond what analysts singled out in the company’s quarterly report. HYZN stock was down more than 14% in premarket trading, but the shares closed solidly in the green by the end of the day.
Keep holding, Great Ones. Hyzon Motors is gonna be huge.
Are you saying … to infinity and Hyzon?
Well, yes … but check this out too: My colleague Adam O’Dell’s talking about a tiny Silicon Valley firm that uses AI to crack open the largest untapped energy source in the world…
Not oil, gas, wind, solar, hydro, nuclear … or anything you’ve likely heard about before. Yet this breakthrough is set to help launch an era of cheap, abundant electricity the likes of which the world has never seen.
Longtime Great Stuff Pick Nvidia (Nasdaq: NVDA) just announced a new lineup of super-fast computer chips that can speed up AI algorithms used in data centers — a highly lucrative part of the company’s overall business.
Nvidia was already nuking its competition in the high-powered, deep-learning AI market. But these new chips — along with the development of new supercomputer “Eos” — will put it that much more ahead of rival Intel (Nasdaq: INTC). As if Intel needed any more nails in its chipmaking coffin…
Speaking of chips, Paul says so-called “safe” blue-chip stocks are heading for the danger zone — and only a small number of companies will come out on top following this recent market unrest.
For a complete list of companies Paul’s currently avoiding, click right here.
This morning, happy little camper constructor Winnebago (NYSE: WGO) delivered a mighty fine earnings report that showed revenue up 39% year over year and diluted earnings per share up 42% from 2021.
Outdoorsy people everywhere continue to park their money in Winnebago’s RVs, offering investors an off-road entry into a part of the travel industry not as affected by COVID. I mean … supply chain issues and manufacturing materials aside.
In fact, cost inflation was investors’ only real concern in an otherwise stellar earnings report. This could explain why WGO stock idled in the red today instead of zooming higher, as was well deserved.
For all its Photoshop wizardry, Adobe (Nasdaq: ADBE) probably could’ve masked its tepid long-term outlook a bit better in its recent earnings report.
While Adobe announced quarterly earnings that beat Wall Street’s expectations by $0.03 per share, the company’s calling for a potential revenue slowdown later in the year due to “rising competition” and a “slower digital marketing spending backdrop.”
Investors weren’t entirely sure how to take that last bit. But like a picture whose background doesn’t quite line up, Adobe’s attitude set off alarm bells, causing its stock to dip 7%.
It’s a dank day for a weed wedding, Great Ones. It’s a great day to … buy agaaaain!
Canadian cannabis company Cresco Labs (OTC: CRLBF) just confirmed it’s buying bud buddy Columbia Care (OTC: CCHWF) for $2 billion in a move that will make Cresco’s cannabis kingdom one of the largest in the U.S.
Notably, the companies are aiming for annual revenue of $100 million or more in eight states by 2023 — branching out of their leading market positions in Illinois, Pennsylvania, Colorado and Virginia.
Makes me hopeful they’ll hop over to Kentucky sometime soon … you know, for science. Both Cresco and Columbia’s stock prices fell fractionally lower on the news.
Hyzon earnings and a new Poll of the Week? On the same day?! What a time to be a Great One!
Here in the thick of earnings season, we often get so caught up in how “analysts expect this” and “Wall Street wanted that,” we forget to even ask … who are these analysts that companies are trying so hard to impress, hmm?
And does anyone actually care about what these Wall Street randos expect out of corporate earnings season?
I mean, sure you might have some Wall Street analysts trying to impress still other analysts in an ever-changing game of one-upmanship and chest-thumping of who can be more bullish or bearish. It’s like keeping up with a soap opera but with more numbers and SEC regulations.
But for investors like you and me? What difference does it make if some corporate bean counter tells us to buy, sell or hold certain stocks?
A bit on the nihilistic side today, I see.
This isn’t all hypothetical, by the way … I actually want to know if you follow Wall Street analysts’ advice in your personal, day-to-day investments.
So, click below and let me know:
Once you’re done answering the new poll, gather ‘round for the results from last week’s poll!
With Chinese stocks stuck in that revolving door of “to delist or not to delist,” we wanted to know if any of you still own Chinese stocks.
Only 38.7% of y’all are investing in the Middle Kingdom, while another 55.9% of you said you’re avoiding Chinese stocks for the time being. Then there are the 5.4% of Great Ones having second thoughts about avoiding Chinese stocks thus far.
Got a different spin on the Chinese delisting spree? Need to vent about the current market climes? Ready to rant about analysts’ expectations for Friday Feedback? Hit me up in the inbox!
GreatStuffToday@BanyanHill.com is where you can reach us best. And if you’re still still itching for more of that Great Stuff, first see a doctor about that (I worry about y’all sometimes).
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Until next time, stay Great!
Regards,
Joseph Hargett
Editor, Great Stuff