FuelCell's stock drops after revenue falls below expectations
By Tomi Kilgore
Product revenue sinks 56%, while losses narrow more than what was forecast
Shares of FuelCell Energy Inc. were knocked lower Tuesday, after the fuel cell technology company reported fiscal fourth-quarter revenue that fell more than expected, as product revenue tanked more than 50%.
The stock (FCEL) slumped 3.9% in premarket trading. That puts it on track for a third straight loss, after closing Dec. 14 at a four-month high.
Net losses for the quarter to Oct. 31 narrowed to $31.2 million, or 7 cents a share, from $43.3 million, or 11 cents a share, in the same period a year ago. That beat the FactSet consensus for a per-share loss of 8 cents.
Revenue dropped 42.7% to $22.5 million to miss the FactSet consensus of $25.0 million, as product revenue tanked 56.3% to $10.5 million.
Among FuelCell's other business segments, service agreements revenue was negative $829,000, compared with negative $1.1 million a year ago, amid higher future-cost estimates. Generation revenue declined 2.7% to $8.5 million and advanced technologies revenue dropped 43.1% to $4.3 million.
Backlog decreased 5.7% to $1.03 billion.
The company ended the quarter with total cash and short-term investments of $403.3 million, down from $414 million at the end of the third quarter.
"We remain committed to maintaining our liquidity position and the strength of our balance sheet," said Chief Executive Jason Few. "We are focused on prudently managing our cash and prioritizing capital expenditures with a disciplined approach to capital allocation," Few added.
The stock has rallied 26.5% over the past three months through Monday but has tumbled 45% year to date. In comparison, the S&P 500 has climbed 23.5% this year.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
12-19-23 0844ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Morningstar’s Guide to Investing in Stocks
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst