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FuelCell (FCEL) to Report Q2 Earnings: What's in Store?

Zacks Equity Research

FuelCell Energy Inc. FCEL is scheduled to release second-quarter fiscal 2019 results on Jul 11. In the last reported quarter, the company delivered a negative earnings surprise of 5.88%.

Let’s see how things are shaping up for this alternate energy company prior to the earnings announcement.

Factors to Consider

During the quarter, FuelCell commissioned the world's most advanced and flexible solid oxide fuel cell project in Pittsburgh, PA. Commissioning of this power plant is a major step forward in the commercialization of its solid oxide platform. This paves way for further growth of this clean energy source.

During the quarter, the company announced a project at the U.S. Navy Submarine Base in Groton, CT. The clean fuel cell project could assist the company to receive similar contracts from other military bases.

Earnings Whispers

A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. However, FuelCell does not have the required combination, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

FuelCell Energy, Inc. Price and EPS Surprise

FuelCell Energy, Inc. Price and EPS Surprise

FuelCell Energy, Inc. price-eps-surprise | FuelCell Energy, Inc. Quote

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: FuelCell currently has a Zacks Rank #2. The company’s favorable Zacks Rank, when combined with the 0.00% ESP, lowers the possibility of an earnings beat.

However, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.

Stocks With Favorable Combination

Let’s focus on a few stocks from the same sector that have the right combination of elements to post an earnings beat in the upcoming releases:

Plains GP Holdings, L.P. PAGP is expected to release second-quarter results on Aug 6. It has an Earnings ESP of +57.14% and a Zacks Rank #1.

Ring Energy Inc. REI is expected to release second-quarter results on Aug 14. It has an Earnings ESP of +6.25% and a Zacks Rank #1.

Vermilion Energy Inc. VET is expected to release second-quarter results on Jul 29. It has an Earnings ESP of +3.45% and a Zacks Rank #2.

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Vermilion Energy Inc. (VET) : Free Stock Analysis Report
 
Plains Group Holdings, L.P. (PAGP) : Free Stock Analysis Report
 
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FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report
 
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