FuelCell Energy Third Quarter Earnings Sneak Peek

FuelCell Energy, Inc. (NASDAQ:FCEL) will unveil its latest earnings on Wednesday, September 5, 2012. Fuelcell Energy is engaged in the development and production of stationary fuel cells for commercial, industrial, government and utility customers.

FuelCell Energy, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 5 cents per share, a narrower loss from the year-earlier quarter net loss of 7 cents. During the past three months, the average estimate has moved down from a loss of 4 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 5 cents during the last month.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported a loss of 6 cents per share versus a mean estimate of net loss of 5 cents per share. In the first quarter, the company beat estimates by 2 cents.

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A Look Back: In the second quarter, the company’s loss narrowed to a loss of $8.3 million (6 cents a share) from a loss of $20 million (24 cents) a year earlier, but missed analyst expectations. Revenue fell 15.6% to $24.2 million from $28.6 million.

Stock Price Performance: Between June 5, 2012 and August 29, 2012, the stock price fell 30 cents (-24.2%), from $1.24 to 94 cents. The stock price saw one of its best stretches over the last year between May 23, 2012 and May 31, 2012, when shares rose for six straight days, increasing 42.3% (+40 cents) over that span. It saw one of its worst periods between November 11, 2011 and November 23, 2011 when shares fell for nine straight days, dropping 17.6% (-18 cents) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 2.5% in revenue from the year-earlier quarter to $31.9 million.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 65.1% in the third quarter of the last fiscal year, 76.2% in the fourth quarter of the last fiscal year and 11.6%in the first quarter before dropping in the second quarter.

Analyst Ratings: With two analysts rating the stock as a buy, none rating it as a sell and two rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.71 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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

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