FuelCell Energy Inc. (FCEL) reported third quarter of fiscal 2014 adjusted loss of 3 cents per share, in line with the Zacks Consensus Estimate and the loss in the prior-year quarter.
GAAP loss was also 3 cents per share in the reported quarter, in line with the prior year.
In spite of the in line loss, FuelCell shares lost 10.9% in the last two trading sessions to close finally at $2.38 per share yesterday on lower-than-expected revenues.
Revenue
In the third quarter of fiscal 2014, FuelCell Energy’s total revenues were $43.1 million, missing the Zacks Consensus Estimate of $53 million by 18.6%. Total revenues decreased 19.6% from $53.7 million a year ago.
Lower product sales and advanced technologies contract revenues primarily led to a drop in quarterly revenues. This was partially offset by higher service agreements and license revenues as a result of an increase in base installation and planned module exchange.
Highlights of the Release
In the quarter under review, FuelCell Energy’s total cost of revenues was $39.2 million, down 20.2% from $49.1 million in the prior-year quarter.
The company reported quarterly gross profit of $3.9 million compared with $4.5 million a year ago.
Total operating expenses in the quarter were $9.96 million, up 9.3% from the year-ago figure primarily due to higher administrative and selling, and research and development expenses.
FuelCell Energy’s interest expenses were down 39.8% year over year to $0.64 million from $1.08 billion a year ago.
Total backlog in the reported quarter increased 2.1% to $350 million from $342.8 million in the prior-quarter.
Other Earnings Releases
Plug Power Inc. (PLUG) posted a second-quarter 2014 loss of 4 cents per share, in line with the Zacks Consensus Estimate.
Ballard Power Systems Inc. (BLDP) posted a loss of 3 cents per share in the second quarter of 2014, in line with the Zacks Consensus Estimate
Our View
FuelCell Energy once again reported earnings in the red. However, increasing annual production volumes going forward will help the company to reverse its losses. In addition, common stock investment and $40 million evolving construction and term financing facility from NRG Energy (NRG) are expected to help the company in the near term.
FuelCell Energy currently has a Zacks Rank #3 (Hold).
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