Please ensure Javascript is enabled for purposes of website accessibility

Why Bloom Energy Stock Just Dropped 30%

By Rich Smith - Mar 17, 2020 at 10:42AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Sales disappointed in Q4, and they'll probably do so again.

What happened

Shares of energy-in-a-box company Bloom Energy (BE 0.52%) are tumbling today, down 30.3% as of 10:10 a.m. EDT -- and for once, this is a story that doesn't have (much) to do with the coronavirus scare. Instead, this is straight-up an earnings story.

Last night, Bloom reported its Q4 numbers, and instead of the more than $270 million that Wall Street analysts had predicted it would collect, Bloom's sales for the quarter were less than $214 million. Investors were disappointed, and Bloom stock is down as a result.  

Bloom Energy boxes at Yahoo HQ.

Image source: Bloom Energy.

So what

It gets worse.

While Bloom attempted to put a happy face on the news, emphasizing how fast its revenues grew in Q4 -- 36% year over year -- and how fast "acceptances" of its energy-producing devices grew as well -- up 50% -- investors focused instead on how fast the company will probably not grow in the current quarter.

Now what

Specifically, Bloom guided investors to expect Q1 2020 sales of only $140 million to $160 million. At the top of that range, Bloom looks likely to miss analysts' consensus sales target of $215 million by 26%; at the bottom of the range, by 35%.

Admittedly, this is still kind of a coronavirus story. I imagine that customer fears that our whole economy is slouching toward a recession may be depressing demand for Bloom's products. But whatever the reason, what Bloom had to say about guidance yesterday was not what investors wanted to hear.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Bloom Energy Corporation Stock Quote
Bloom Energy Corporation
$17.29 (0.52%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.