FuelCell Energy Inc (NASDAQ:FCEL) Looks Re-Energized

FuelCell Energy Inc (NASDAQ:FCEL) Looks Re-Energized


FuelCell Energy Inc (NASDAQ:FCEL) pulled back a bit today, but has been climbing since Monday afternoon. FCEL is seeing increased volatility in trading, which comes on an 6% overall increase for the week.

That said, FCEL is coming off a disappointing quarter. FCEL reported an adjusted loss of 31 cents per share in the third quarter of fiscal 2017. In the third quarter of fiscal 2017, FuelCell Energy’s total revenue was $10.4 million. Total revenue also dipped 52% from $21.7 million in the year-ago quarter. The drop in the total revenue was primarily due to lower contribution from the product segment.

FuelCell Energy Inc (NASDAQ:FCEL) delivers fuel cell power solutions. The Company is engaged in designing, manufacturing, installing, operating and maintaining fuel cell power solutions. The Company also provides turnkey power generation solutions to the customers, including power plant installation, operations and maintenance. The Company’s segment is fuel cell power plant production and research. The Company offers its services to various sectors, including utility companies, municipalities, universities, government entities and a range of industrial and commercial enterprises. The Company, by utilizing its Direct FuelCell (DFC) plants, is commercializing a tri-generation distributed hydrogen configuration that generates electricity, heat and hydrogen for industrial and/or transportation uses, as well as a fuel cell carbon capture solution for coal or gas-fired power plants. The Company is also developing and commercializing solid oxide fuel cell (SOFC) plants for sub-megawatt applications.

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However, FCEL does have good news to report. As of Jul 31 2017, the company’s total backlog was $437 million, as against $392.1 million in the year-ago period. In the quarter under review, the company’s cost of revenues was approximately $13 million, down 40% from $21.3 million in the prior-year quarter. Operating expenses were $11.7 million, 9.3% lower than the year-ago quarter.

“Our primary highlight is that we received over $1 billion of new and incremental global project awards,” said Arthur A. Bottone, CEO. “These awards provide us with a clear path to profitability and are transformational for FuelCell Energy. These awards highlight our strong competitive position and the confidence of our customers to execute and provide valuable lasting solutions.

“We were awarded the entire Long Island Power Authority or LIPA 40-megawatt utility program. Comprised of 3 separate projects, these awards represent up to $800 million in contract revenue over 20-year power purchase agreement,” Bottone continued.

“We closed our first fuel cell project in Asia. This 20-megawatt fuel cell park in South Korea represents approximately $200 million of equipment sales and expected services revenue. And an outright equipment sale, it will monetize existing inventory.”

FuelCell Energy Inc (NASDAQ:FCEL) should be on your radar this week. A year ago, FCEL was worth more than $5, but granted needs to really show some potential here before it returns to that level. FCEL owns a $99.81M market cap with 61.49M in outstanding shares. Sign-up for continuing coverage on shares of $FCEL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: We hold no position in $FCEL, either long or short, and we have not been compensated for this article.

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