Bloom Energy (BE 10.99%) shares are ending the week on a very sour note. The hydrogen energy company reported fourth-quarter results last night, and the market has sent its shares toward a four-year low today.
As of 1:30 p.m. ET, Bloom shares were lower on the day by 19.2%. That's partially because the company reported a nearly 23% drop in revenue compared to last year's fourth quarter. But there was another reason why the shares are hitting multiyear lows.
Losing its chief financial officer
Along with its financial results, Bloom announced that after four years in the role, company president and CFO Greg Cameron will be leaving the company. And the departure was apparently not planned, since Bloom says it has now hired an executive search service to seek replacement CFO candidates.
The company added that the departure was not related to any disagreements or matters related to company operations or policies. But Wall Street doesn't like change, especially in the financial C-suite, when it comes as a surprise.
What's next for Bloom?
Last night Bloom reported revenue dropped nearly 23% year over year. The results surprised analysts who expected a slight increase in sales. The company did say it swung to a profit in the fourth quarter with net income of $4.5 million. That profit of $0.02 per share represented a strong rebound from the year-ago loss of $0.23 per share.
But investors and analysts are more focused on the drop in sales. That largely came from a hit in its Korean business, where the company had announced several collaborations last year for sales of its hydrogen fuel cells.
Bloom CEO KR Sridhar told investors the company had to "hit a pause" in sales to Korea to "adapt to the new policy and procurement rules" the government initiated last year. That resulted in a hit to Bloom's Korean sales that Sridhar said has continued into 2024.
He said those sales are getting back on track, but the disappointing news has investors giving up on this renewable energy company, at least for now.
