FuelCell (FCEL) Q3 Loss Narrower Than Expected, Sales Fall
FuelCell Energy, Inc. FCEL reported a third-quarter fiscal 2023 net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The loss was also narrower than the year-ago quarter’s loss of 8 cents.
Total Revenues
FuelCell’s total revenues came in at $25.51 million, surpassing the Zacks Consensus Estimate of $25.23 million by 1.1%. The year-ago revenues were $43.1 million.
FuelCell Energy, Inc. Price, Consensus and EPS Surprise
FuelCell Energy, Inc. price-consensus-eps-surprise-chart | FuelCell Energy, Inc. Quote
Segmental Details
Product: No product revenues were recorded in the third quarter of fiscal 2023. The $18 million revenues recognized in the prior-year quarter were due to module sales to KFC.
Service: Total revenues were $9.8 million, up 8.8% year over year. The increase in revenues was primarily due to two new module exchanges at the plant owned by Korea Southern Power Company in Korea and a module exchange at the plant at Trinity College.
Generation: Total revenues of $11 million jumped marginally from $10.9 million in the prior-year period.
Advanced Technologies: Total revenues decreased 9.5% year over year to $4.7 million. The decrease was due to lower government and other contracts revenues.
Highlights of the Release
The company incurred a gross loss of $8.2 million compared with a gross loss of $4.2 million in third-quarter fiscal 2022.
Total operating expenses rose 39.3% year over year to $33.2 million. FCEL incurred research and development expenses of $15.6 million in third-quarter fiscal 2023, which reflects increased spending on the company’s ongoing commercial development efforts related to its solid oxide platform and carbon capture solutions compared to the prior-year period.
Interest expenses in the reported quarter were $1.9 million, up 17.9% from the prior-year level.
The backlog at the end of third-quarter fiscal 2023 was $1.06 billion, lower than $1.28 billion registered in the year-ago period.
Financial Update
Cash and cash equivalents (unrestricted) as of Jul 31, 2023, were $303.7 million compared with $458.1 million on Oct 31, 2022.
Long-term debt and other liabilities as of Jul 31, 2023, were $109.1 million compared with $82.9 million on Oct 31, 2022.
Zacks Rank
Currently, FuelCell has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Ballard Power Systems Inc. BLDP is expected to report third-quarter 2023 results on Nov 6. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 13 cents per share, indicating a year-over-year improvement of 7.1%.
The same for 2023 indicates a loss of 48 cents per share, implying a year-over-year improvement of 11.1%. BLDP delivered an average earnings surprise of 14.62% in the last four quarters.
Plug Power Inc. PLUG is expected to report third-quarter 2023 results on Nov 14. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 30 cents per share, on par with the year-ago reported number.
The Zacks Consensus Estimate for 2023 sales is pegged at $1.3 billion, implying a year-over-year improvement of 84.8%.
Bloom Energy Corp. BE is expected to report third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 2 cents per share, indicating a year-over-year improvement of 90%.
The same for 2023 indicates a loss of 21 cents, implying a year-over-year improvement of 48.8%.
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