Categories Analysis, Energy

FuelCell Energy (FCEL) stock rebounds on growth prospects

FuelCell Energy Inc. (NASDAQ: FCEL) stock rebounded over 308% in the past month and over 593% in the past three months ahead of Q4 earnings results. The investors turned positive about the company’s future growth after the completion of the restructuring phase of transformation. The shares have risen over 205% in the past six months while it has fallen over 67% in the past year.

The company, which sells stationary fuel cell power plants for distributed power generation, has remained the favorite and highly speculative play of both the traders and investors. The stock has turned out to be an expensive trading vehicle and the recent run has caused the market capitalization to expand to $433 million.

power plant
Image for representation. Courtesy: Johannes Plenio on Unsplash

In the June-end 2019, the company has fallen to the verge of bankruptcy because of the danger of tripping debt covenants. However, the stock recovered from the 27-year low as the company got access to much-needed capital to wipe out old debts and fulfill its backlog. The company has shown an impressive turnaround to the hottest speculative play in renewable energy.

Meanwhile, FuelCell will provide strategic updates and its fourth-quarter earnings results on January 14 before the market opens. It is expected that the company could provide additional details about the liquidity and cash flow generation. The transformation efforts have given confidence for the company to deliver on current project commitments at a lower cost and successfully scale to meet future growth needs.

Analysts expect the company to report a loss of $0.11 per share on revenue of $11.51 million for the fourth quarter. In comparison, during the previous year quarter, the company posted a loss of $2.28 per share on revenue of $17.88 million. The company has missed analysts’ expectations thrice in the past four quarters. Most of the analysts recommended a “strong-buy” or “buy” rating with an average price target of $0.75.

Read: Chevron stock turns bullish

For the third quarter, FuelCell reported a narrower loss helped by lower costs and expenses as well as an 88% jump in revenues. The top-line growth was driven by the ExxonMobil license agreement and an increase in Generation revenues related to the Bridgeport Fuel Cell Project.

The restructuring initiatives and resources being allocated to funded Advanced Technologies projects aided in a reduction in spending. However, the company incurred higher legal and professional fees related to the company’s on-going restructuring and refinancing initiatives.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top