FuelCell Energy Earnings: Revenue Dips By Double-Digits and Misses Estimate

FuelCell Energy Inc. ‘s (NASDAQ:FCEL) second quarter loss narrowed, beating estimates. Fuelcell Energy is engaged in the development and production of stationary fuel cells for commercial, industrial, government and utility customers.

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FuelCell Energy Inc. Earnings Cheat Sheet

Results: Loss narrowed to $8.3 million (loss of 6 cents per diluted share) from $20 million (loss of 24 cents per share) in the same quarter a year earlier.

Revenue: Fell 15.4% to $24.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FuelCell Energy Inc. beat the mean analyst estimate of a loss of 7 cents per share. It fell short of the average revenue estimate of $32.9 million.

Quoting Management: “Cost reduction efforts and streamlining certain aspects of our business over the past year allowed us to break-even at the gross profit level this quarter despite lower revenue year-over-year, with a gross margin improvement of $2.3 million on an adjusted basis,” said Chip Bottone, President and CEO, FuelCell Energy, Inc.

“Continued execution of our strategic initiatives will provide expanding order growth from the growing demand in Asia, market development actions in Europe, as well as resurgence of our US domestic market.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 76.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. The average estimate for the third quarter is now at a loss of 6 cents per share, up from a loss of 7 cents. For the fiscal year, the average estimate has moved from a loss of 36 cents a share to a loss of 33 cents over the last ninety days.

Competitors to Watch: Plug Power Inc., Ballard Power Systems Inc., Hoku Corporation, Energy Conversion Devices, Inc., Ascent Solar Tech., Inc., First Solar, Inc., Evergreen Solar, Inc., DayStar Technologies Inc., SunPower Corporation, and ZBB Energy Corporation.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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