Shares of Fervo Energy Co. (FRVO) plummeted 5.01% during intraday trading on Wednesday, reversing sharp premarket gains after investors digested the company's second-quarter financial results, which revealed a significantly wider loss than analysts had anticipated.
The geothermal energy company reported a quarterly loss of $0.38 per share, notably missing the consensus analyst estimate of a $0.12 per share loss. Revenue of $113,000 also fell well short of the $420,000 consensus forecast. The net loss widened to $55.9 million, up from $11.4 million in the prior-year quarter, while operating loss grew to $28.7 million from $10.3 million a year earlier.
Despite the miss, the stock initially rose in premarket trading, likely buoyed by positive operational updates, including progress at the Cape Station Phase I and a raised long-term development target. However, the negative surprise in the quarterly financials ultimately weighed on investor sentiment as the regular trading session progressed, wiping out the early gains.
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