Ballard Power (NASDAQ:BLDP) shares plummeted 5.01% in pre-market trading on Monday, despite the company reporting better-than-expected earnings per share for the second quarter of 2025. The sharp decline comes as investors digest mixed financial results and ongoing challenges in the renewable energy equipment sector.

The fuel cell technology company reported a quarterly loss of $0.08 per share, beating analyst consensus estimates of $0.09 per share. This represents a 27.27% improvement from the $0.11 per share loss reported in the same quarter last year. However, Ballard Power's revenue of $17.8 million, while up 11.25% year-over-year, fell short of analyst expectations of $18.04 million.

The stock's decline may also be influenced by broader market sentiment towards the renewable energy sector. Wall Street's median 12-month price target for Ballard Power stands at $1.40, approximately 28.6% below its last closing price. The current average analyst rating on the shares is "hold," with 1 "buy," 10 "hold," and 4 "sell" recommendations. This cautious outlook, combined with the company's continued quarterly losses, appears to be weighing heavily on investor sentiment despite the better-than-expected EPS figures.