The 10-second takeaway
For the quarter ended Oct. 31 (Q4), FuelCell Energy beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP loss per share expanded.
Gross margins increased, operating margins shrank, net margins contracted.
FuelCell Energy booked revenue of $35.4 million. The five analysts polled by S&P Capital IQ expected a top line of $30.7 million on the same basis. GAAP reported sales were 2.0% higher than the prior-year quarter's $34.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.05. The five earnings estimates compiled by S&P Capital IQ averaged -$0.05 per share. GAAP EPS were -$0.07 for Q4 compared to -$0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 2.5%, 120 basis points better than the prior-year quarter. Operating margin was -23.8%, 110 basis points worse than the prior-year quarter. Net margin was -32.0%, 1,170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $34.1 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $153.0 million. The average EPS estimate is -$0.13.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 577 members out of 700 rating the stock outperform, and 123 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give FuelCell Energy a green thumbs-up, and 53 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FuelCell Energy is outperform, with an average price target of $2.18.
If you're interested in companies like FuelCell Energy, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add FuelCell Energy to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.