Shares of FuelCell Energy were falling sharply on Wednesday when the power equipment maker reported earnings that largely missed Wall Street’s expectations.
FuelCell (ticker: FCEL) reported an adjusted loss of 7 cents per share compared to Wall Street’s forecasts on sales of $13.9 million, with a loss of 3 cents per share. According to FactSet, analysts were predicting sales of $21.8 million in the quarter.
The company also reported the final results for the fiscal year 2021, which proved to be overwhelming. The yearly loss came in at 31 cents per share, which exceeded the consensus for a loss of 27 cents.
FuelCell sales this year were $69.6 million, not $76.9 million from analysts’ estimates. Sales declined 1.8% for the year from 2020, when the company reported sales of $70.9 million.
“We ended fiscal year 2021 with slightly lower revenues than fiscal year 2020, but we continued to make significant progress on our in-flight projects as well as new technology and applications under development, such as our solid A successful demonstration of the effectiveness of the oxide fuel cell,” CEO Jason Few said in a statement.
The stock was down 14.7% on Wednesday at $5.01. Shares have fallen 55 per cent this year. Much of the value in FuelCell stock is based on future expectations for the adoption of its low carbon emissions technology.
Potentially taking a bite out of profits was a backlog of $1.2 billion as of October 31, the company said last year.
“Looking ahead, we are focused on executing against our current project backlog, as well as increasing our annual production rate, re-establishing our brand for the future, and building a next-generation sales structure. are focused.”
The company also resolved a series of legal battles with Posco Energy, which filed suit against FuelCell for alleged breach of contract. Fuelcell and Posco this week announced a deal that “clarified” the company’s reach in the Asian market, some added.
Write to Sabrina Escobar at [email protected]