Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of FuelCell Energy Inc. (NASDAQ: FCEL) dropped 20% today after the company released disappointing earnings.
So what: Fiscal fourth quarter revenue was up 55.8% to $55.2 million, which was above the $44.8 million estimate from Wall Street. But investors are more concerned about a $0.05 per share loss, which was two cents worse than estimates and puts expected earnings improvement next year in question.
Now what: The loss may have been disappointing, but there was a lot of progress in the quarter. Backlog increased to $355.4 million from $318.9 million a year ago and there was the 56% jump in revenue. I think the reaction is harsh given the quarter's progress and wouldn't be worried about missing the earning guess of just two analysts. In short, I see this as a buying opportunity today.
Stocks for the future of energy
The energy industry is changing rapidly and investors need to stay on their toes. That's why The Motley Fool is offering a comprehensive look at three energy companies well prepared for the future of energy, revealed in the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.