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FuelCell's (FCEL) Q2 Loss Wider Than Expected, Sales Lag

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FuelCell Energy’s (FCEL - Free Report) second-quarter fiscal 2022 operating loss of 8 cents per share was wider than the Zacks Consensus Estimate of a loss of 6 cents by 33.3%. In the year-ago quarter, the company incurred a loss of 6 cents per share.

Revenues

FuelCell’s total revenues came in at $16 million, lagging the Zacks Consensus Estimate of $33 million by 50.9%. Revenues improved 14.3% from $14 million in the year-ago 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: Total revenues were $2.6 million, up 300% year over year. Service revenues improved from the prior-year period primarily due to refurbished module exchange and non-routine maintenance activities during the quarter.

Generation: Total revenues were $9.1 million, which improved 46% year over year. The improvement was due to higher operating output of the generation fleet portfolio and the completion of the Long Island Power Authority (“LIPA”), Yaphank project during the three months ended Jan 31, 2022.

Advanced Technologies: Total revenues of $4.7 million were down 34% year over year.

Highlights of the Release

For the reported quarter, the company incurred a gross loss of $7.3 million compared with a loss of $4.8 million in second-quarter fiscal 2021.

Total operating expenses increased 64.6% year over year to $20.9 million.

Interest expense for the reported quarter was $1.7 million, 8.9% higher than the prior-year period.

Backlog at the end of second-quarter fiscal 2022 was $1.32 billion, up 0.2% year over year.

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

Financial Update

Cash and cash equivalents (unrestricted) as of Apr 30, 2022 were $467.8 million compared with $432.2 million on Oct 31, 2021.

Long-term debt and other liabilities as of Apr 30, 2022 were $79.5 million compared with $78.6 million on Oct 31, 2021.

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

Bloom Energy (BE - Free Report) is expected to release second-quarter 2022 earnings on Aug 3. The Zacks Consensus Estimate for the to-be-reported quarter’s bottom line is pegged at a loss of 18 cents per share.

The Zacks Consensus Estimate for Bloom Energy’s 2022 and 2023 earnings indicates year-over-year growth of 30.9% and 152.1%, respectively. Long-term (three to five years) earnings growth of Bloom Energy is currently pegged at 25%.

Chesapeake Energy (CHK - Free Report) is expected to release second-quarter 2022 earnings on Aug 9. The Zacks Consensus Estimate for the to-be-reported quarter’s bottom line is pegged at $3.14 per share.

The Zacks Consensus Estimate for Chesapeake Energy’s 2023 earnings suggests year-over-year growth of 12.9%. Long-term earnings growth of Chesapeake Energy is currently pegged at 6.3%.

Ameresco, Inc. (AMRC - Free Report) is scheduled to release second-quarter 2022 earnings on Aug 1. The Zacks Consensus Estimate for the to-be-reported quarter’s bottom line is pegged at 47 cents per share.

The Zacks Consensus Estimate for Ameresco’s 2022 and 2023 earnings implies year-over-year growth of 25.2% and 11.6%, respectively. Long-term earnings growth of Ameresco is currently pegged at 25.1%.