FuelCell Energy Inc. Earnings Cheat Sheet: Loss Narrows

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FuelCell Energy Inc. ‘s (NASDAQ:FCEL) fourth quarter loss narrowed due mainly to positive revenue growth. Fuelcell Energy is engaged in the development and production of stationary fuel cells for commercial, industrial, government and utility customers.

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FuelCell Energy Earnings Cheat Sheet for the Fourth Quarter

Results: Loss narrowed to $7.1 million (loss of 6 cents per diluted share) from $12.1 million (loss of 11 cents per share) in the same quarter a year earlier.

Revenue: Rose 76.2% to $34.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FCEL beat the mean analyst estimate of a loss of 7 cents per share. It beat the average revenue estimate of $32.9 million.

Quoting Management: “Our business model is well suited for global expansion as the attributes of our power plants provide financially attractive solutions for customers and we are able to offer localization of certain aspects of the power plants, providing sustainable local job creation,” said Chip Bottone, President and CEO of FuelCell Energy, Inc. “We continue to align ourselves with a select group of partners that understand the power industry and are well positioned to drive market growth. This is illustrated by our recent partnership announcement with Abengoa to build a market for renewable biogas and liquid biofuels in Europe and Latin America and our announcement that POSCO Power is expanding in Southeast Asia.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the third quarter, by one cent in the second quarter, and by 2 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 65.1% to $31.2 million in the third quarter. The figure rose 72.5% in the second quarter from the year earlier and climbed 92.1% in the first quarter from the year-ago quarter.

Gross margins grew 19.6 percentage points to 1.3%. The growth seemed to be driven by increased revenue, as the figure rose 76.2% from the year earlier quarter while costs rose 47.1%.

Looking Forward: The outlook for the company’s performance in the upcoming quarter is increasingly favorable. Over the past ninety days, the average estimate for the first quarter of the next fiscal year has risen from a loss 7 cents per share to a profit of 6 cents. For the fiscal year, the average estimate has moved from a loss of 36 cents a share to a loss of 33 cents over the last ninety days.

Competitors to Watch: Ballard Power Systems Inc. (NASDAQ:BLDP), Hoku Corporation (NASDAQ:HOKU), Energy Conversion Devices, Inc. (NASDAQ:ENER), Ascent Solar Tech., Inc. (NASDAQ:ASTI), First Solar, Inc. (NASDAQ:FSLR), Evergreen Solar, Inc. (NASDAQ:ESLR), DayStar Technologies Inc. (NASDAQ:DSTI), SunPower Corporation (NASDAQ:SPWRA), and ZBB Energy Corporation (NYSE:ZBB).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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