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FuelCell Soars on Beating Estimates as Loss Narrows, Revenue Jumps

Published 09/14/2021, 11:56 AM
Updated 09/14/2021, 11:57 AM
© Reuters.
FCEL
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By Dhirendra Tripathi

Investing.com – FuelCell Energy stock (NASDAQ:FCEL) climbed 27% Tuesday as third-quarter results came ahead of expectations and the company reiterated its outlook.

The company’s net loss narrowed to $11.99 million from $15.33 million in the 2020 July quarter.

Revenue rose 43% from last year to $26.82 million as service agreements and license revenue more than doubled to $14.3 million. The company attributed this to more modules being exchanged during the three-month period.

Generation revenue rose 32% to $6.2 million primarily due to higher operating output of the generation fleet portfolio as a result of investments in maintenance activities and an increase in the size of the fleet.

Lower interest charges because of a prepayment of a loan helped the bottom line.

The company’s order backlog reduced by 2.2% to $1.3 billion because of faster execution. This was reflected in total project assets growing to $238.3 million as of July 31 compared to $223.4 million at the end of April.

The company retained its ambitious targets for the next financial year which include doubling of its generation portfolio and a double-digit compounded growth rate in revenue compared to the 2019 revenue of $60.8 million.

FuelCell closed the July quarter with an operating generation portfolio of 34 MW with another 42.1 MW under construction.

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