FuelCell Energy posts smaller-than-expected Q4 loss, to focus on data center market

Reuters12-18 20:39
FuelCell Energy posts smaller-than-expected Q4 loss, to focus on data center market

Overview

  • Renewable power company's fiscal Q4 revenue rose 12%, beating analyst expectations

  • Adjusted loss per share for fiscal Q4 smaller than analyst expectations, reflecting cost-saving actions

  • Company emphasized focus on data center market and strategic initiatives

Outlook

  • FuelCell Energy focuses on data center market for future growth

  • Company aims to expand manufacturing capacity to meet future demand

  • FuelCell Energy strengthens liquidity with $278.1 mln cash and EXIM financing

Result Drivers

  • PRODUCT REVENUES - Revenue increase primarily driven by long-term service agreement with Gyeonggi Green Energy for fuel cell modules in Korea

  • COST REDUCTIONS - Decrease in operating expenses due to reduced R&D spending and restructuring actions

  • DATA CENTER FOCUS - Strategic focus on data center market to leverage efficient power solutions

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$55.02 mln

$47.40 mln (7 Analysts)

Q4 Adjusted EPS

Beat

-$0.83

-$1.21 (7 Analysts)

Q4 EPS

-$0.85

Q4 Net Income

-$29.34 mln

Q4 EBIT

-$28.32 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the renewable energy equipment & services peer group is "buy."

  • Wall Street's median 12-month price target for Fuelcell Energy Inc is $7.53, about 4.7% below its December 17 closing price of $7.90

Press Release: ID:nGNXGcxFN

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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