FuelCell Energy (NASDAQ:FCEL) Posts Earnings Results, Misses Estimates By $1.05 EPS

FuelCell Energy (NASDAQ:FCEL) released its quarterly earnings data on Monday, June 8th. The energy company reported ($0.53) earnings per share for the quarter, missing the consensus estimate of $0.52 by ($1.05), FiscalAI reports. The business had revenue of $35.59 million for the quarter, compared to analyst estimates of $40.47 million. FuelCell Energy had a negative return on equity of 15.90% and a negative net margin of 132.41%.During the same quarter in the previous year, the company posted ($1.79) EPS.

Here are the key takeaways from FuelCell Energy’s conference call:

• FuelCell Energy said demand tied to AI, digital infrastructure, and high-density data centers is driving a sharp increase in interest for its behind-the-meter baseload power solutions. The company’s submitted proposal pipeline rose to 4 GW, with data center customers representing about 89% of the pipeline.
• The company introduced a 12.5 MW standardized “FuelCell Energy Block” designed to speed deployment and improve economics for large customers. Management said the product is resonating with data center buyers because it supports phased scaling and can help reduce time to power.
• FuelCell Energy is increasing planned manufacturing capacity at Torrington from 350 MW to 500 MW annually, with total expansion costs expected to be $200 million to $275 million. Management emphasized the buildout will be paced with contracted backlog, market demand, and financing support rather than ahead of demand.
• Second-quarter revenue was $35.6 million, down 5% year over year, while operating loss widened to $77.9 million due largely to a $42.6 million non-cash impairment tied to the Groton project. Net loss attributable to common stockholders was $78.7 million, or $1.45 per share.
• The company ended the quarter with $440.9 million in total cash and equivalents and remains essentially debt-free aside from project-specific financing. Adjusted EBITDA improved to negative $17.1 million from negative $19.3 million a year ago, and management reiterated its target of adjusted EBITDA positive once production reaches about 100 MW annually.

FuelCell Energy Stock Performance

Shares of FCEL stock opened at $22.54 on Thursday. The firm has a market capitalization of $1.52 billion, a price-to-earnings ratio of -3.43 and a beta of 2.31. The stock has a fifty day moving average of $21.00 and a 200 day moving average of $12.47. FuelCell Energy has a 52 week low of $3.78 and a 52 week high of $37.88. The company has a quick ratio of 7.20, a current ratio of 8.59 and a debt-to-equity ratio of 0.18.

More FuelCell Energy News

Here are the key news stories impacting FuelCell Energy this week:

• Positive Sentiment: FuelCell Energy said proceeds from the upsized offering will help expand manufacturing capacity and fund growth initiatives, which could strengthen its long-term business outlook. FuelCell Energy Announces Upsize and Pricing of Offering of Common Stock
• Positive Sentiment: The company also unveiled a new Fit Energy data center partnership that could create up to 380 MW of potential projects, adding to its growth pipeline. FuelCell Energy Raises $225 Million And Lands Fit Energy Data Center Deal
• Neutral Sentiment: EVP Shankar Achanta disclosed a sale of 2,500 shares worth about $71,775, but the transaction appears small relative to the company’s overall market value and is not likely the main driver of the stock move. FuelCell Energy EVP Sells Stock
• Negative Sentiment: The stock’s decline is mainly tied to the discounted equity sale, which investors see as dilutive and a reason to take profits after FCEL’s strong recent rally. Why FuelCell Energy Stock Is Tumbling on Wednesday

Analyst Ratings Changes

FCEL has been the topic of a number of research analyst reports. Weiss Ratings upgraded FuelCell Energy from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, May 20th. Jefferies Financial Group raised FuelCell Energy from a “hold” rating to a “buy” rating and increased their price objective for the stock from $16.00 to $24.00 in a report on Friday, June 26th. Canaccord Genuity Group raised their price target on shares of FuelCell Energy from $12.00 to $30.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. TD Cowen reissued a “hold” rating and set a $16.00 price objective (up from $9.00) on shares of FuelCell Energy in a report on Tuesday, June 9th. Finally, B. Riley Financial upgraded shares of FuelCell Energy from a “neutral” rating to a “buy” rating and upped their target price for the stock from $13.00 to $32.00 in a research report on Monday, June 29th. Three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $22.00.

Insider Transactions at FuelCell Energy

In other FuelCell Energy news, EVP Shankar Achanta sold 2,500 shares of the firm’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $28.71, for a total value of $71,775.00. Following the completion of the sale, the executive vice president directly owned 2,618 shares in the company, valued at $75,162.78. This trade represents a 48.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 5.46% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Rhumbline Advisers boosted its holdings in FuelCell Energy by 21.1% in the first quarter. Rhumbline Advisers now owns 32,012 shares of the energy company’s stock worth $147,000 after acquiring an additional 5,585 shares in the last quarter. Marshall Wace LLP purchased a new position in FuelCell Energy in the second quarter worth about $122,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in FuelCell Energy by 6.3% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 334,793 shares of the energy company’s stock worth $1,877,000 after acquiring an additional 19,857 shares during the period. Bank of America Corp DE grew its holdings in FuelCell Energy by 31.9% during the second quarter. Bank of America Corp DE now owns 18,351 shares of the energy company’s stock valued at $103,000 after purchasing an additional 4,435 shares during the period. Finally, Brevan Howard Capital Management LP bought a new stake in FuelCell Energy during the 2nd quarter worth approximately $216,000. 42.78% of the stock is owned by hedge funds and other institutional investors.

About FuelCell Energy

FuelCell Energy, Inc (NASDAQ: FCEL) is a publicly traded company that designs, manufactures and operates turnkey molten carbonate fuel cell power plants. These stationary, on-site energy solutions generate electricity and heat through an electrochemical process that combines natural gas or biogas with oxygen, producing power with lower greenhouse gas emissions than traditional fossil fuel-based generation. The company’s fuel cell technology is engineered for continuous, baseload operation and can be integrated into microgrid architectures and industrial power systems to provide reliable, around-the-clock energy.

The company’s core product suite, marketed under the SureSource brand, encompasses both power generation and integrated carbon capture or hydrogen production capabilities.