Shares of NuScale Power (SMR 4.23%), the development-stage maker of small modular reactors, beat estimates in its first-quarter earnings report and is making progress with a range of initiatives.
As of 10:48 a.m. ET, the stock was up 17.2% on the news.
Image source: Getty Images.
NuScale takes a step forward
NuScale reported $13.4 million in revenue in the first quarter, well above the $1.4 million it earned in the quarter a year ago and the analyst consensus at $3.4 million.
That increase in revenue was driven by its FEED (Front-End Engineering Design) Phase 2 Project with Fluor and its Technology License Agreement for the RoPower Doicesti power plant. Infrastructure company Fluor is a majority owner of NuScale, which arguably gives it a competitive advantage.
NuScale controlled its operating expenses in the quarter, which fell from $44.6 million to $42.3 million. Its operating loss narrowed from $44 million to $35.3 million.
NYSE: SMR
Key Data Points
What's next for NuScale Power?
NuScale remains the only small modular reactor company to be certified by the U.S. Nuclear Regulatory Commission.
The company also expects Standard Design Approval for increasing power output per module from 50 MWe (megawatt electric) to 77 MWe by July. NuScale is in discussions with as many as 10 potential customers, and expects to receive a firm customer order this year.
The momentum in the business seems to be building and NuScale is well-capitalized, with $521.4 million in cash and equivalents at the end of the quarter.
With demand for power expected to soar as artificial intelligence (AI) takes off, NuScale could be a big winner. The nuclear stock is speculative, but it's worth watching, especially for investors looking for a different way to gain exposure to AI.
