FuelCell Energy posts smaller-than-expected Q4 loss, to focus on data center market
FuelCell Energy reported a smaller-than-expected loss for Q4, with revenue rising 12%, surpassing analyst expectations. The company is focusing on the data center market for future growth and plans to expand manufacturing capacity. Cost reductions were achieved through decreased R&D spending and restructuring. FuelCell Energy has strengthened its liquidity with $278.1 million in cash and EXIM financing. The current analyst rating is "hold," with a median 12-month price target of $7.53, slightly below the recent closing price.
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Overview
- Renewable power company’s fiscal Q4 revenue rose 12%, beating analyst expectations
- Adjusted loss per share for fiscal Q4 smaller than analyst expectations, reflecting cost-saving actions
- Company emphasized focus on data center market and strategic initiatives
Outlook
- FuelCell Energy focuses on data center market for future growth
- Company aims to expand manufacturing capacity to meet future demand
- FuelCell Energy strengthens liquidity with $278.1 mln cash and EXIM financing
Result Drivers
- PRODUCT REVENUES - Revenue increase primarily driven by long-term service agreement with Gyeonggi Green Energy for fuel cell modules in Korea
- COST REDUCTIONS - Decrease in operating expenses due to reduced R&D spending and restructuring actions
- DATA CENTER FOCUS - Strategic focus on data center market to leverage efficient power solutions
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q4 Beat $55.02 $47.40
Revenue mln mln (7
Analysts
)
Q4 Beat -$0.83 -$1.21
Adjusted (7
EPS Analysts
)
Q4 EPS -$0.85
Q4 Net -$29.34
Income mln
Q4 EBIT -$28.32
mln
Analyst Coverage
- The current average analyst rating on the shares is “hold” and the breakdown of recommendations is no “strong buy” or “buy”, 6 “hold” and 2 “sell” or “strong sell”
- The average consensus recommendation for the renewable energy equipment & services peer group is “buy.”
- Wall Street’s median 12-month price target for Fuelcell Energy Inc is $7.53, about 4.7% below its December 17 closing price of $7.90
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
