What happened
The S&P 500 and Dow Jones Industrial Average may both be lagging today, but shares of liquefied natural gas stock New Fortress Energy (NFE -0.25%) are headed in the other direction, thanks to a strong fourth-quarter 2021 earnings report that came out after the market closed yesterday. In addition to beating Wall Street's projections, New Fortress Energy reported that it achieved company records on several metrics during the previous quarter.
As of 11:34 a.m. ET, New Fortress Energy's stock has risen 15.1%.
So what
Surpassing analysts' expectations that it would generate revenue of $483 million, New Fortress Energy reported $648.6 million on the top line -- a company record for quarterly revenue. Consider that the company reported sales of $304.7 million in Q3 2021 and $145.7 million in Q4 2020, and the company's recent performance becomes all the more impressive.
The bottom of the income statement also has investors cheering. Whereas analysts expected the company to book earnings per share of $0.71, New Fortress Energy reported EPS of $0.72. Besides the fact that this represented a company record, it also contributed to the company generating EPS of $0.47 for the year, which was again an all-time best.
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While the company's core competency is its liquefied natural gas business, it has its sights set on generating green hydrogen. In the press release accompanying the earnings report, New Fortress Energy announced that it's "making significant progress in the development of our clean hydrogen business, NFE Zero Parks," adding that it's getting close to identifying its first project, a 100-megawatt green hydrogen facility.
Now what
With the company setting several company records, it's unsurprising that investors are energized about New Fortress Energy's stock. Likewise, the company's progress in green hydrogen is also an expected catalyst, considering how interested the market is in fuel cell stocks recently. But budget-conscious investors may want to look for other natural gas options in light of New Fortress Energy's high price tag, which has the stock valued at 172 times trailing earnings.
