FuelCell Energy Whiffs on Revenues

Seth Jayson, The Motley Fool
Updated

FuelCell Energy (NAS: FCEL) reported earnings on June 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q2), FuelCell Energy whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share dropped.


Margins grew across the board.

Revenue details
FuelCell Energy logged revenue of $24.2 million. The three analysts polled by S&P Capital IQ predicted revenue of $33.5 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $28.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.06. The three earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.06 for Q2 compared to -$0.24 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 0.8%, 3,880 basis points better than the prior-year quarter. Operating margin was -32.1%, 3,720 basis points better than the prior-year quarter. Net margin was -34.3%, 3,550 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $44.8 million. On the bottom line, the average EPS estimate is -$0.04.

Next year's average estimate for revenue is $154.2 million. The average EPS estimate is -$0.16.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 588 members out of 713 rating the stock outperform, and 125 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give FuelCell Energy a green thumbs-up, and 55 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FuelCell Energy is outperform, with an average price target of $2.83.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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