FuelCell Stock Rises After Revenue More Than Doubles In Q4: But Retail Sentiment Dips As Losses Widen

Shares of FuelCell Energy (FCEL) rose nearly 2% in Thursday’s pre-market after the firm reported its fourth-quarter earnings that saw its revenue more than double.

Total revenues increased 120% year-over-year (YoY) to $49.33 million compared to a Wall Street estimate of $39.66 million, according to FinChat. The firm reported an earnings loss of $2.21 per share versus an analyst estimate of a loss of $1.74. Net loss widened to $42.22 million compared to $31.16 million in the same quarter a year ago.

CEO Jason Few said revenue doubled primarily led by module sales to Gyeonggi Green Energy Co. in South Korea.

“Looking ahead, we believe that global demand for energy remains strong in markets around the world, driven by data centers, AI, cryptocurrency growth, the need for more resilient and reliable grids, and carbon recovery and capture,” he said.

In November, FuelCell Energy announced a global restructuring of its operations in the U.S., Canada, and Germany aimed at significantly reducing its operating costs, realigning resources toward advancing its core technologies, and protecting its competitive position amid slower-than-expected investments in clean energy.

The firm believes the restructuring plan will help prioritize commercially available technologies to reflect changing market opportunities with an updated strategic plan. It also expects to reduce operating costs by approximately 15% in fiscal year 2025, compared with fiscal year 2024.

The company’s CEO expects the business to be on stronger financial footing in 2025 due to the company’s global restructuring.

“Our go-forward strategy will enable us to better navigate the current market and emphasizes topline revenue growth and future profitability,” he added.

FuelCell also pointed out that as of Oct. 31, 2024, its backlog rose by approximately 13.1% to $1.16 billion, compared to $1.03 billion as of Oct. 31, 2023. This was driven by the GGE Agreement entered into during the third quarter of fiscal year 2024.

The firm noted that under the GGE Agreement, commissioning of the first six 1.4-MW replacement fuel cell modules was completed in Q4 and that an additional 30 1.4-MW replacement fuel cell modules are likely to be commissioned throughout CY 2025.

The remaining six 1.4-MW replacement fuel cell modules are expected to be commissioned in the first half of calendar year 2026.

Following the announcements, retail sentiment on Stocktwits fell to ‘bearish’ territory (36/100) from ‘neutral’ a day ago, accompanied by high retail chatter.

FuelCell’s Sentiment Meter and Message Volume as of 8:52 a.m. ET on Dec. 19, 2024 | Source: Stocktwits

However, some of the retail chatter indicated optimism surrounding the stock.

Shares of FuelCell Energy have lost over 78% since the beginning of the year.

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