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FuelCell (FCEL) Q4 Loss Wider than Expected, Revenues Beat

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FuelCell Energy, Inc. (FCEL - Free Report) incurred fourth-quarter fiscal 2020 operating loss of 8 cents per share, wider than the Zacks Consensus Estimate of a loss of 7 cents. However, the figure was narrower than the year-ago loss of 12 cents per share.

Total Revenues

FuelCell’s total revenues came in at $17 million, beating the Zacks Consensus Estimate of $16 million by 6.8%. Revenues also improved 54.5% from $11 million in the year-earlier period.

FuelCell Energy, Inc. Price, Consensus and EPS Surprise

FuelCell Energy, Inc. Price, Consensus and EPS Surprise

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

Segmental Details

Service and License: Total revenues were $5.4 million, up a whopping 623% year over year. Service revenues included revenues recognized for module exchanges at three plant locations compared with no module exchanges in the comparable prior-year period.

Generation: Total revenues were $5.1 million, which declined 6% year over year. The decrease was due to plant maintenance activities, primarily related to downtime, with upgrades performed at the Bridgeport Fuel Cell facility.

Advanced Technologies: Total revenues of $6.4 million rose 48% year over year. This improvement was owing to the joint development agreement with ExxonMobil (XOM - Free Report) during first-quarter fiscal 2020 for enhancing the carbon capture fuel cell technology and apt timing of activity under other existing contracts.

Highlights of the Release

In the reported quarter, the company incurred a gross loss of $8 million compared with a loss of $23.4 million in fourth-quarter fiscal 2019.

Total operating expenses declined 5.5% year over year to $9.07 million.

Interest expense for the reported quarter was $4.3 million, up 53.6% from the prior-year period.

Backlog at the end of fourth-quarter fiscal 2020 was $1.28 billion, down 2.5% year over year.

FuelCell is working on the Powerhouse business strategy, which is focused on initiatives intended to transform, strengthen and grow the company over the next three years.

Financial Update

Cash and cash equivalents as of Oct 31, 2020 were $149.9 million compared with $9.4 million on Oct 31, 2019.

Long-term debt and other liabilities as of Oct 31, 2020 were $150.6 million compared with $90.14 million on Oct 31, 2019.

Zacks Rank

Currently, FuelCell has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Plug Power, Inc. (PLUG - Free Report) is likely to release fourth-quarter 2020 results on Jan 26. The Zacks Consensus Estimate for the to-be-reported quarter’s bottom line stands at a loss of 7 cents per share.

Bloom Energy (BE - Free Report) is likely to release fourth-quarter 2020 earnings on Feb 10. The Zacks Consensus Estimate for the to-be-reported quarter’s bottom line is pegged at 2 cents per share.

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