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FuelCell Energy (FCEL) Loss Narrower than Expected in Q3
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FuelCell Energy (FCEL - Free Report) reported a loss of 38 cents per share in third-quarter fiscal 2016, which was narrower than the Zacks Consensus Estimate of a loss of 39 cents.
However, the reported loss was much wider than the year-ago tally of 29 cents.
Revenues
Revenues in the reported quarter came in at $21.7 million, lagging the Zacks Consensus Estimate of $32 million by 32.2% and declining 47.6% from the year-ago figure of $41.4 million.
Segment Details
Product sales totaled $13.7 million in the third quarter of fiscal 2016 compared with $31.1 million the prior-year period. The decrease was due to lower equipment, procurement and construction revenues, and lower sales in Asia.
Service agreements and license revenues were $4.5 million compared with $7.0 million in third-quarter fiscal 2015. The decrease was due to fewer service module replacements.
Advanced Technologies contract revenues totaled $3.5 million in the quarter compared with $3.2 million a year ago.
Total backlog was $392.1 million as of Jul 31, 2016, compared with $338.3 million as of Jul 31, 2015. The increase was primarily due to a rise in Service backlog and Advanced Technologies contracts backlog.
Gross profit in the reported quarter was $0.4 million with gross margin of 2%, compared with gross profit of $3.6 million and gross margin of 8.7% in the third quarter of fiscal 2015. The decline in gross profit was due to lower sales and a sales mix oriented toward Asian sales instead of complete power plants.
Operating expenses in the reported quarter were $10.8 million compared with $10.7 million in the prior-year period.
R&D expenses increased by $0.7 million year over year to $5.3 million, reflecting continued product enhancement programs targeting specific opportunities, particularly for the utility and wastewater treatment markets. This shows that the company is working to improve the quality of its products so that it can cater to an expanded customer base.
Financial Condition
Cash and cash equivalents as of Jul 31, 2016 were $94.1 million compared with $58.85 million as of Oct 30, 2015.
Long-term debt and other liabilities as of Jul 31, 2016 were $42.6 million compared with $12.99 million as of Oct 30, 2015.
Zacks Rank & Top Picks
FuelCell Energy currently has a Zacks Rank #2 (Buy). Investors interested in the Other Alternate Energy industry can also consider stocks like Ormat Technologies, Inc. (ORA - Free Report) , Gevo, Inc. (GEVO - Free Report) and U.S. Geothermal Inc. . While Ormat Technologies sports a Zacks Rank #1 (Strong Buy), both Gevo and U.S. Geothermal carry the same rank as FuelCell Energy. You can see the complete list of today’s Zacks #1 Rank stocks here.
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FuelCell Energy (FCEL) Loss Narrower than Expected in Q3
FuelCell Energy (FCEL - Free Report) reported a loss of 38 cents per share in third-quarter fiscal 2016, which was narrower than the Zacks Consensus Estimate of a loss of 39 cents.
However, the reported loss was much wider than the year-ago tally of 29 cents.
Revenues
Revenues in the reported quarter came in at $21.7 million, lagging the Zacks Consensus Estimate of $32 million by 32.2% and declining 47.6% from the year-ago figure of $41.4 million.
Segment Details
Product sales totaled $13.7 million in the third quarter of fiscal 2016 compared with $31.1 million the prior-year period. The decrease was due to lower equipment, procurement and construction revenues, and lower sales in Asia.
Service agreements and license revenues were $4.5 million compared with $7.0 million in third-quarter fiscal 2015. The decrease was due to fewer service module replacements.
Advanced Technologies contract revenues totaled $3.5 million in the quarter compared with $3.2 million a year ago.
FUELCELL ENERGY Price, Consensus and EPS Surprise
FUELCELL ENERGY Price, Consensus and EPS Surprise | FUELCELL ENERGY Quote
Highlight of the Release
Total backlog was $392.1 million as of Jul 31, 2016, compared with $338.3 million as of Jul 31, 2015. The increase was primarily due to a rise in Service backlog and Advanced Technologies contracts backlog.
Gross profit in the reported quarter was $0.4 million with gross margin of 2%, compared with gross profit of $3.6 million and gross margin of 8.7% in the third quarter of fiscal 2015. The decline in gross profit was due to lower sales and a sales mix oriented toward Asian sales instead of complete power plants.
Operating expenses in the reported quarter were $10.8 million compared with $10.7 million in the prior-year period.
R&D expenses increased by $0.7 million year over year to $5.3 million, reflecting continued product enhancement programs targeting specific opportunities, particularly for the utility and wastewater treatment markets. This shows that the company is working to improve the quality of its products so that it can cater to an expanded customer base.
Financial Condition
Cash and cash equivalents as of Jul 31, 2016 were $94.1 million compared with $58.85 million as of Oct 30, 2015.
Long-term debt and other liabilities as of Jul 31, 2016 were $42.6 million compared with $12.99 million as of Oct 30, 2015.
Zacks Rank & Top Picks
FuelCell Energy currently has a Zacks Rank #2 (Buy). Investors interested in the Other Alternate Energy industry can also consider stocks like Ormat Technologies, Inc. (ORA - Free Report) , Gevo, Inc. (GEVO - Free Report) and U.S. Geothermal Inc. . While Ormat Technologies sports a Zacks Rank #1 (Strong Buy), both Gevo and U.S. Geothermal carry the same rank as FuelCell Energy. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>