CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

FuelCell (FCEL) stock sinks 14% on earnings miss

By Monte Stewart


Updated

FuelCell Energy SureSource 3000
Comprised of two 1.4 megawatt (MW) modules, the SureSource 3000 generates 2.8 MW of ultra-clean power – Photo: FuelCell Energy

FuelCell Energy’s (FCEL) stock price sank more than 14% Wednesday after the US renewable energy company reported fiscal fourth quarter and full year earnings that came in below Wall Street estimates.

Shares fell as much as 18% at one point to $4.83 per share before recovering some of the losses. Wednesday’s stock plunge occurred after the price rose more than 2% in premarket trading.

The Danbury, Connecticut-based company reported an adjusted net loss of $25m, or seven cents per share for the quarter ended 31 October. Analysts polled by Dow Jones had expected an adjusted loss of three cents per share. FuelCell Energy lost $19.7m, or eight cents per share, in the fourth quarter of 2020.

Revenue declined 18% year-over-year to $13.9m (£10.4m) from $17.0m.

Full year results

On a full-year basis, revenue dipped 2% to $69.6m from $70.9m from a year earlier. The adjusted net loss attributable to common stockholders was $104.3m, or 31 cents per share. Analysts polled by Dow Jones had expected it to come in at 27 per cents per share. Last year, the company lost $92.4m, or 42 cents per share.

“We finished fiscal-year 2021 with slightly lower revenue compared to fiscal-year 2020, but we continued to make important progress on our in-flight projects as well as new technology and applications under development, such as the successful demonstration of the effectiveness of our solid oxide fuel cell,” said president and CEO Jason Few in a news release. He added on the company's earning call that FuelCell Energy believes it can deliver a demonstration platform this year.

Adjusted earnings before interest, taxation, debt, and amortisation (EBITDA) fell 50.4% year-over-year to $35.7m from $17.7m.

Customers include utility companies, municipalities, universities, hospitals, government entities and military bases, and various industrial and commercial enterprises. The company says the US and South Korea are its leading markets.

What is your sentiment on Natural Gas?

2.5610
Bullish
or
Bearish
Vote to see Traders sentiment!

NVDA

466.37 Price
+2.690% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.42

TSLA

243.13 Price
+1.380% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.27

GME

16.11 Price
+10.830% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.25

ALT

6.62 Price
-4.660% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.07

Earnings report follows lawsuit settlement

The earnings report came two days after FuelCell Energy announced that it settled a lawsuit with POSCO Energy, the largest private energy producer in South Korea. The agreement confirmed FuelCell’s exclusive right to sell its platform technology throughout Asia, while all previous licences granted to POSCO were amended.

“We are expecting orders for at least 20 replacement modules in calendar year 2022 to service existing installations in South Korea,” Few said on the company’s earnings call. “The total value of these orders represents roughly 86% of our 2022 revenue. We are optimistic that we will see meaningful revenues from product sales from Korea on a going forward basis.”

The chief executive also said FuelCell Energy is looking forward to creating opportunities in other Asian markets as well as select countries in Europe, the Middle East and Africa where it is prioritising product sales.

POSCO received the right to service its existing installed POSCO customer base but was given no other rights to FuelCell Energy technology in South Korea or broader Asian markets.

Other projects

Earlier in the year, FuelCell Energy announced that it had advanced through commissioning at the US Navy submarine base in Groton, Connecticut and the company’s 7.4-megawatt power platform in Yaphank, New York. FuelCell Energy also extended its joint development agreement with ExxonMobil until 30 April 2022.

Founded in 1969, FuelCell manufactures fuel cell power plants of different sizes on a global basis. Power is derived from natural gas or biogas, carbon capture, and distributed hydrogen.

Read More: FuelCell Energy stock forecast amid the green transition

Markets in this article

FCEL
FuelCell Energy, Inc.
1.26 USD
0.04 +3.420%
FCEL
FuelCell Energy, Inc.
1.26 USD
0.04 +3.420%

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading