Stock Earnings in Review: FuelCell Energy Inc. (NASDAQ:FCEL)

FuelCell Energy Inc. (NASDAQ:FCEL) reported earnings for the three months ended April 2016 on June 08, 2016. The company earned $-0.56 per share on revenue of $28.58M. Analysts had been modeling earning per share of $-0.4 with $35.02M in revenue.

FuelCell Energy Inc. (NASDAQ:FCEL) reported financial results for its second quarter ended April 30, 2016 and key business highlights.

  • ExxonMobil carbon capture agreement advances global market opportunity
  • More than 125 megawatts of fuel cell project bids outstanding with near term decision dates
  • Total assets in excess of $300 million and backlog in excess of $400 million
  • New $25 million debt facility to further support project development activities

Financial Results 
FuelCell Energy (the Company) reported total revenues for the second quarter of 2016 of $28.6 million, which is comparable to the prior year period.  Revenue components include:

  • Product sales of $15.4 million for the current period compared to $20.2 million for the second quarter of 2015, as the comparable prior year period included module sales to Asia and higher equipment, procurement and construction (EPC) activity.
  • Service agreements and license revenues of $10.6 million for the current period compared to $4.6 million for the comparable prior year period, increasing year-over-year, primarily due to revenue recognized from module replacements.
  • Advanced Technologies contract revenues of $2.6 million for the current period compared to $3.8 million for the comparable prior year period.  Revenue was lower year-over-year pending commencement of new projects in backlog.

A gross loss of ($0.2) million was incurred in the second quarter of 2016, compared to a gross profit of $2.0 million generated for the comparable prior year period.  Product revenue mix oriented towards fuel cell kit sales to Asia in the current period compared to complete power plant sales in North America for the prior year period resulted in a year-over-year decrease in product gross profit.  Service margins were negatively impacted by non-recurring charges from the termination of a legacy sub-megawatt service contract and changes to a different legacy service contract reflecting continued initiatives to optimize the service business, exit sub megawatt sites and expand future margin potential.

Operating expenses for the current period totaled $12.6 million compared to $10.8 million for the prior year period.  The increase reflects greater project bid activity and timing of increased research and development related to product enhancements and new near-term product introductions, such as completion of European Union (EU) certification for MW-class plants, developing a renewable biogas clean-up skid as the Company seeks to capture more of the overall project value chain, further enhancing the micro-grid offering, and advancing different power plant configurations for specific target markets.

Net loss attributable to common shareholders for the second quarter of 2016 totaled $16.2 million, or $0.56 per basic and diluted share, compared to $10.7 million or $0.44 per basic and diluted share for the second quarter of 2015.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter of 2016 totaled ($11.5) million. Refer to the discussion of Non-GAAP financial measures below regarding the Company’s calculation of Adjusted EBITDA.  Capital spending was $1.0 million and depreciation expense was $1.2 million.

Revenue Backlog
Total backlog was $410.7 million as of April 30, 2016 compared to $312.2 million as of April 30, 2015 and sequentially, total backlog was $403.9 million as of January 31, 2016.

  • Services backlog totaled $294.8 million as of April 30, 2016 compared to $203.7 million as of April 30, 2015. Services backlog includes future contracted revenue from routine maintenance, scheduled module exchanges, and from power purchase agreements.
  • Product sales backlog totaled $51.0 million as of April 30, 2016 compared to $91.6 million as of April 30, 2015.  Product sales backlog reflects firm orders with executed contracts.  Notices of awards, outstanding bids, and project pipeline is not included in product backlog.
  • Advanced Technologies contracts backlog totaled $64.9 million as of April 30, 2016 compared to $16.9 million as of April 30, 2015.  Carbon capture contracts account for the majority of the increase year-over-year.

FuelCell Energy Inc. earnings per share showed an increasing trend of 34.2% for the current fiscal year. The company’s expected EPS decline rate for next fiscal year is -90%.Analysts project EPS growth over the next 5 years at 15%. It has EPS annual growth over the past 5 fiscal years of 29.3% when sales grew 18.5. It reported 0% sales drop, and -27.4% EPS decline in the last quarter.

The stock is trading at $5.5, up 21.95% from 52-week low of $4.51. The stock trades down -56.76% from its peak of $12.72 and % below the consensus price target of $12.4. Its volume clocked up at 0.52 million shares which is lower than the average volume of 0.6 million shares. Its market capitalization currently stands at $167.29M.

Bookmark the permalink.

Comments are closed.