Over the past year or so, FuelCell Energy Inc (NASDAQ:FCEL) managed to make a remarkable turnaround in its business, which led to an impressive rally in its stock. However, FCEL stock suffered a significant fall today after the company announced a deeper than expected loss and lower revenue.
Increase in Quarterly Losses
The losses for the fiscal fourth quarter stood at $36 million or 23 cents a share, which is significantly higher than the $17.9 million losses or $2.31 a share that FuelCell suffered in the same quarter last year. Analysts were targeting the company to report a loss of 11 cents a share.
Revenue plunged by as much as 38% to hit $11 million and fell short of analysts’ estimates of $11.5 million. Additionally, product sales slumped by as much as 95% to $500,000.
The disappointing financial performance triggered a selloff in this morning’s trading, and FCEL stock plunged by as much as 23% to $2.28.
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Earlier this week, FuelCell Energy got some positive news after it received a letter from NASDAQ, which stated that the company’s stock managed to regain the minimum bid price requirement compliance for the exchange. It is a significant development for FCEL stock since it allays fears of delisting.
It cannot be denied that the company’s latest financial results are a setback, however. Even so, despite the fall in the stock price, one should note that since November 2019, FuelCell stock has gained considerably. Ever since it signed an expansion to the existing joint development agreement with energy giant Exxon Mobil Corporation (NYSE:XOM) in November, the stock has managed to gain in excess of 1,000% over the past three months. That reflects the sort of turnaround that has been made by the company in recent times, and hence, the latest drop in the stock price might not seem that big a deal in the larger scheme of things.
However, it cannot be denied that the latest earnings report has come as a disappointment for most FCEL stock investors.
What do you think?
Featured image: DepositPhotos © Thomaspajot
