FCEL stock is rebounding this morning after falling as much as 45% over the past week following disappointing earnings from FuelCell Energy Inc (NASDAQ:FCEL).
Over the course of the past few months, FuelCell has emerged as a company that has turned its business around somewhat. However, the past week has not been a great time for FCEL stock, which has slipped by around 45% from its recent peak price of $3.00 over the past week. The slide started after the company declared its financial results for the fourth quarter.
Earnings Review
After FuelCell Energy announced its fourth-quarter results, FCEL stock dived by as much as 30% and since then has continued to slide. FuelCell failed to meet revenue and earnings expectations, and that came as a rude shock to many investors.
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The company did manage to recover quite strongly over the past few quarters, and in the last three months, FCEL stock gained as much as 500%. In such a situation, there was widespread expectation that FuelCell Energy was going to close out the year with a strong performance.
However, that was not to be, and since then, FCEL stock has continued to suffer at the hand of investors. It remains to be seen whether FuelCell will be able to recover in the coming days. In the fourth quarter, the company’s net losses deepened to $36 million, and that is a significantly higher figure than the $17.9 million loss it made in the year-ago period.
However, the loss per share went down to $0.23 per share from $2.31 per share. That being said, analysts had projected a loss per share of $0.11. It is believed that FuelCell Energy’s decision to put less emphasis on product sales is the primary reason behind the poor performance.
At the time of writing, FCEL stock is trading higher by 12% at $1.73.
Featured image: DepositPhotos © nazarenko
