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Ballard (BLDP) Q4 Loss Wider Than Expected, Revenues Beat

Zacks Equity Research

Ballard Power Systems BLDP reported fourth-quarter 2018 operating loss of 6 cent per share wider than the Zacks Consensus Estimate of a loss of 2 cents.

Moreover, full-year 2018 reported loss of 15 cents was wider than 5 cents loss incurred in 2017.

Total Revenue

Ballard’s fourth-quarter revenues of $28.5 million surpassed the Zacks Consensus Estimate of $23.5 million by 21.3%. However, the top line declined 29.3% from the year-ago tally of $40.3 million.

The full-year 2018 total revenue was $96.6 million, down from $121.3 million in 2017.

Ballard Power Systems, Inc. Price, Consensus and EPS Surprise

Ballard Power Systems, Inc. Price, Consensus and EPS Surprise | Ballard Power Systems, Inc. Quote

Highlights of the Release

In the reported quarter, gross margin declined 25% to $7.2 million, primarily on account of low sales of Membrane Electrode Assemblies in China and limited volume of high margin Portable Power/UAV sales owing to divestiture of the Power Manager business.

Operating expenses was $13.4 million, 1.5% higher than the year-ago quarter.

Cash operating costs were $11.2 million, in line with prior-year quarter.

Financial Details

As of Dec 31, 2018, the company had a cash balance of $192.2 million, up from $131.9 million as of Dec 31, 2017.

Ballard’s cash used in operating activities in 2018 was $31.7 million compared with $9.8 million used in 2017.

Looking Ahead

Ballard has 12-month committed orders of $69 million expected for delivery in 2019, along with a significant pipeline of qualified commercial sales opportunities. The orders from China, Europe and North America are likely to comprise significant portion of the company’s expected total revenues in 2019.

The company expects 2019 performance to be aided by the collaboration agreement with Weichai Power, and continued investment in talent, technology, products and customer experience.

Other Release

FuelCell Energy, Inc. FCEL incurred fourth-quarter fiscal 2018 adjusted loss of 19 cents per share, wider than the Zacks Consensus Estimate of 17 cents.

Zacks Rank

Ballard Power Systems currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same industry are AVX Corporation AVX and OSI Systems, Inc. OSIS. Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

AVX Corporation delivered average positive earnings surprise of 34.84% in the last four quarters. The Zacks Consensus Estimate for earnings has advanced 9.7% to $1.58 per share in the past 60 days.

OSI Systems recorded average positive earnings surprise of 19% in the last four quarters. The Zacks Consensus Estimate for earnings has risen 3% to $4.02 per share in the past 60 days.

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