FuelCell Energy Whiffs on Revenues

FuelCell Energy (Nasdaq: FCEL  ) reported earnings on June 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q2), FuelCell Energy whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share dropped.

Margins grew across the board.

Revenue details
FuelCell Energy logged revenue of $24.2 million. The three analysts polled by S&P Capital IQ predicted revenue of $33.5 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $28.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.06. The three earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.06 for Q2 compared to -$0.24 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 0.8%, 3,880 basis points better than the prior-year quarter. Operating margin was -32.1%, 3,720 basis points better than the prior-year quarter. Net margin was -34.3%, 3,550 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $44.8 million. On the bottom line, the average EPS estimate is -$0.04.

Next year's average estimate for revenue is $154.2 million. The average EPS estimate is -$0.16.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 588 members out of 713 rating the stock outperform, and 125 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give FuelCell Energy a green thumbs-up, and 55 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FuelCell Energy is outperform, with an average price target of $2.83.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On June 06, 2012, at 12:27 PM, Teacherman1 wrote:

    Quarter ended April 30.

    Most of the interesting stuff occured after that.

    Look at the backlog.

    Good things are coming up in the next couple of quarters.

    JMO and worth exactly what I am charging for it.

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