FuelCell's stock rises above $1 delisting threshold after upbeat earnings report

By Tomi Kilgore

The fuel-cell-technology company's quarterly losses narrow by more than expected, but revenue tumbles on service weakness

Shares of FuelCell Energy Inc. charged higher Monday, enough to trade above the key $1 threshold, after the fuel-cell-technology company reported fiscal second-quarter results that beat expectations.

The results come less than a week after the company disclosed that it received a delisting notice from the Nasdaq because the stock price failed to meet the $1 minimum bid requirement. The stock hasn't closed at $1 or above for back-to-back days since April 17.

"I'm very pleased with our results for the second quarter as we continue to execute on our powerhouse business strategy," said Chief Executive Jason Few, according to an AlphaSense transcript of the post-earnings call with analysts. "Our revenue climbed sequentially compared to our first quarter, but as expected, decreased compared to the prior year period due to the fact that there were no module exchanges this quarter."

The stock (FCEL) powered up 17.1% in morning trading to $1.02. It has soared 45.7% since it closed May 10 at 70 cents, the lowest closing price since Dec. 19, 2019.

Earlier Monday, the company reported a net loss for the quarter ending April 30 of $32.9 million, or 7 cents a share, compared with a loss of $35.1 million, or 9 cents a share, in the same period a year ago.

The FactSet consensus for per-share losses was 8 cents.

Total revenue sank 41.5% to $22.4 million but was above the FactSet consensus of $21.3 million.

Generation revenue jumped 67.3% to $14.1 million and advanced-technologies revenue soared 86.4% to $6.9 million, but service revenue tumbled 94.8% to $1.4 million.

The company recorded no product revenue in the latest quarter or in the year-ago quarter.

Total backlog increased 3.8% to $1.06 billion, with generation backlog down 7.9% to $852.9 million but service backlog spiking up 97% to $145.1 million and advanced technologies backlog leaping 126.5% to $51.1 million.

The earnings report comes less than a week after the company disclosed that it

The company has until Nov. 27, 2024, to regain listing compliance by having the stock close at $1 or above for at least 10 straight sessions.

On May 8, 2019, the company had announced a 1-for-12 reverse stock split that boosted the stock price 12-fold. The announcement came after the stock closed the previous session at a presplit price of about 22 cents and hadn't closed above $1 presplit since Oct. 9, 2018.

Despite Monday's rally, the stock has still tumbled 36.4% year to date, while the S&P 500 has gained 12.1%.

-Tomi Kilgore

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06-10-24 1126ET

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