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FuelCell Energy (FCEL) Q2 Loss Wider Than Expected, Sales Top

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FuelCell Energy, Inc. (FCEL - Free Report) incurred second-quarter fiscal 2018 adjusted loss of 23 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents. However, the company’s loss was narrower than 33 cents recorded in the year-ago period.

Total Revenues

During the quarter under review, FuelCell Energy reported adjusted revenues of $20.8 million, surpassing the Zacks Consensus Estimate of $20 million by 4.2%. Also, the top line improved 2% from the prior-year figure of $20.4 million.

FuelCell Energy, Inc. Price and EPS Surprise


Segmental Performance

Product Revenues: This segment’s earnings skyrocketed 1,555% year over year to $12.2 million. The primary driver for this significant revenue growth was the sale of 2.8 megawatts (MW) fuel cell power plant project.

Service and License Revenues: This segment’s earnings slumped 74.5% to $3.2 million. Revenues fell due to decreased module replacement services during the reported quarter compared with the prior-year figure.

Generation Revenues: The segmental earnings improved 6.6% to $1.7 million. This year-over-year increase was primarily owing to increased revenues on the back of electricity generated from the company’s Purchase Power Agreements (PPAs).

Advanced Technologies Contract Revenues: The bottom line was down 32.5% to $3.7 million at this segment. The total revenues dropped primarily due to the timing of the project activity under the existing contracts compared with the prior year.

Operational Results

Total operating expenses were up 7.1% to $21.5 million due to higher product cost coupled with higher generation cost.

Interest expenses came in at $2.1 million, down 10.9% from $2.3 million in the year-earlier period.

Total amount of backlog at the quarter-end stand at approximately $681.9 million.

Financial Position

FuelCell Energy had cash and cash equivalents of $67 million as of Apr 30, 2018 compared with $49.3 million as of Oct 31, 2017.

Long-term debt was $82.8 million as of Apr 30, 2018 compared with $63.8 million as of Oct 31, 2017.

For six months ending Apr 30, 2018, net cash inflow from operating activities was $41.9 million against cash outflow of $38.6 million a year ago.

Zacks Rank

FuelCell Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Peer Release

NextEra Energy Partners, LP (NEP - Free Report) reported adjusted earnings of $1.21 per share in first-quarter fiscal 2018, beating the Zacks Consensus Estimate of 40 cents.

Covanta Holding Corporation's (CVA - Free Report) first-quarter 2018 adjusted loss came in at 9 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents.

Gevo, Inc. (GEVO - Free Report) reported first-quarter 2018 adjusted loss of $2.2 per share, narrower than the consensus mark of a loss of $4.8 by 54.2%.

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