FuelCell Energy (FCEL) Reports Q4 Loss, Misses Revenue Estimates

FuelCell Energy (FCEL) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -250%. A quarter ago, it was expected that this fuel cell power plant maker would post a loss of $0.05 per share when it actually produced a loss of $0.04, delivering a surprise of 20%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

FuelCell Energy, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $13.94 million for the quarter ended October 2021, missing the Zacks Consensus Estimate by 31.50%. This compares to year-ago revenues of $17 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

FuelCell Energy shares have lost about 47.5% since the beginning of the year versus the S&P 500's gain of 27.4%.

What's Next for FuelCell Energy?

While FuelCell Energy has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for FuelCell Energy: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.04 on $24.9 million in revenues for the coming quarter and -$0.14 on $110.12 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

NextEra Energy (NYSE:NEE) Partners (NEP), another stock in the same industry, has yet to report results for the quarter ended December 2021.

This limited partnership for clean-energy projects is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of -47.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

NextEra Energy Partners' revenues are expected to be $350.87 million, up 65.5% from the year-ago quarter.

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