FuelCell Energy Q4 Loss Wider than Expected, Revenues Top

Zacks

FuelCell Energy Inc. FCEL reported fourth-quarter fiscal 2015 adjusted loss of 38 cents per share, much wider than the Zacks Consensus Estimate of a loss of 27 cents. The company had reported a loss of 24 cents per share in the prior-year quarter.

The yearly loss stood at $1.33 per share while the Zacks Consensus Estimate was pegged at a loss of 66 cents. The prior year loss figure was $2.02.

Revenue Details

In the fourth quarter of fiscal 2015, FuelCell Energy’s total revenues were $51.5 million, surpassing the Zacks Consensus Estimate of $47 million by 9.6%. Total revenues decreased 5.3% from $54.4 million a year ago.

Lower contribution from the company’s service agreements and license business and advanced technologies contract revenues primarily led to a drop in quarterly revenues. This was however partially offset by higher product sales.

Yearly revenues came in at $163.1 million, missing the consensus estimate of $246 million by 33.7%. Revenues also saw a decline of 9.5% from the prior-year level.

Highlights of the Quarterly Release

In the quarter under review, FuelCell Energy’s total cost of revenues was $48.3 million, marginally down from $48.5 million recorded in the prior-year quarter.

The company reported quarterly gross profit of $3.1 million compared with $6 million a year ago.

Total operating expenses in the quarter were $11 million, almost on par with the year-ago figure of $10.9 million.

FuelCell Energy’s interest expenses increased 15% year over year to $0.76 million from $0.66 million a year ago.

In fiscal 2015, total backlog increased 14.2% to $381.4 million from $333.9 million in the prior fiscal. Product sales, service and advanced technologies contracts backlog was $90.8 million, $254.1 million and $36.5 million, respectively.

Financial Details

As of Oct 31, 2015, FuelCell Energy reported cash and cash equivalents and restricted cash of $85.8 million, up from $77.7 million as of Oct 31, 2014.

Total liabilities were $122.6 million as of Oct 31, 2015, compared with the prior-year figure of $122.3 million.

The company’s capital expenditures totaled $3.1 million in the quarter.

Peer Releases

Covanta Holding Corporation CVA posted third-quarter 2015 earnings of 22 cents per share, beating the Zacks Consensus Estimate of 20 cents. The company had posted reported earnings of 26 cents in the prior-year quarter.

U.S. Geothermal Inc. HTM reported third-quarter 2015 earnings of 1 cent per share, in line with the Zacks Consensus Estimate.

Zacks Rank & Other Key Picks

FuelCell Energy currently has a Zacks Rank #2 (Buy). Another favorably ranked stock in the solar space is JA Solar Holdings JASO, sporting a Zacks Rank #1 (Strong Buy).

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