FuelCell Energy Inc Recovers After Sinking 15% On Q2 Results

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FuelCell Energy Inc (NASDAQ:FCEL) shares tumbled as much as 15% on Wednesday after the company’s second quarter results missed Wall Street expectations. However, the stock recovered on Thursday, gaining 3.74% to $2.27. FuelCell’s second quarter net loss more than doubled to $0.07 per share or $16.6 million. Revenues declined 9.8% YoY to $38.3 million. Analysts polled by Thomson Reuters were expecting revenues of $45.18 million and net loss of $0.03 per share.

FuelCell issues in-line current quarter guidance

Its gross margins also declined from 5.5% to 4.2%. Sentiment around FuelCell Energy Inc (NASDAQ:FCEL) also affected peer stocks Plug Power Inc (NASDAQ:PLUG) and Ballard Power Systems Inc. (NASDAQ:BLDP) on Wednesday. Plug Power had dropped 4.5% while Ballard Power had declined 5.5%. Anyway, all three stocks gained on Thursday. It underlines how intertwined stocks of the fuel cell technology companies are.

FuelCell Energy Inc (NASDAQ:FCEL) forecasts revenues for the current quarter and fourth quarter to come in the range of $50-$60 million each. Wall Street consensus for the current quarter calls for $53.07 million in revenues and 3 cents in losses. For the full year, the Danbury-based company expects to post a net loss of 13 cents on $203.5 million in revenues.

Stifel is bullish on FuelCell

Last week, Stifel issued a bullish report, sending the FuelCell Energy Inc (NASDAQ:FCEL) stock up by 9%. Though the research firm reduced its price target to $2.90, Stifel maintained its Buy rating on the stock. Stifel analyst Sven Eenmaa said FuelCell is making significant progress in its transition out of R&D. He believes the company’s fuel cell power plan solution is evolving into a cost-effectively technology that has the potential to become an integral part of the baseload generation mix.

Stifel noted that FuelCell Energy Inc (NASDAQ:FCEL) has also succeeded to some extent in reducing its costs for manufacturing and technology. Consequently, its solutions have increasingly become attractive in many states.

FuelCell Energy Inc (NASDAQ:FCEL) stock soared 4.57% to $2.29 at 2:27 PM EDT on Thursday.

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