FuelCell Energy Releases Earnings Wednesday

| About: FuelCell Energy, (FCEL)

FuelCell Energy, Inc. (NASDAQ:FCEL), together with its subsidiaries, engages in the development, production, and sale of high temperature fuel cells for clean electric power generation. It offers Direct FuelCell Power Plants that electrochemically produce electricity using various fuels, including gas, methanol, diesel, biogas, coal gas, coal mine methane, and propane. The company markets its products to electric utilities and independent power producers; universities; government installations; wastewater treatment facilities; oil production and refining; gas transmission; food and beverage processors, and agricultural operations, as well as landfill gas markets; various commercial, industrial, and municipal customers; and government customers, including food processing plants, government buildings, hotels, and military installations.

It is scheduled to report its Q2 FY2012 results on June 6, 2012, before the market opens.

Recent EPS Actuals vs. Estimates

The company has exceeded analyst estimates in last four quarters. In the last quarter it reported ($0.05) loss per share, beating analyst estimates of ($0.06) loss.

Analyst Estimates

The consensus for EPS is ($0.05) loss based on 4 analysts' estimates, up from ($0.10) loss a year ago. Revenue estimates are $33.54M, up from $28.61M a year ago. The median target price by analysts for the stock is $2.50.

Average recommendation: Overweight


Source: Marketwatch

Analyst Upgrades and Downgrades

On March 11, 2012, Ardour Capital upgraded the stock from Accumulate to Buy.

Key Metrics

  • Market cap: $190.42M
  • 52 week trading range: 0.80 - 1.95
  • P/S: 1.51
  • Annual dividend yield: N/A
  • Total debt: $22.19M
  • Return on Equity: -61.33%
  • Return on Assets: -14.87%

Latest Developments

  • On May 29, 2012, FuelCell Energy Inc announced the extension of service agreements with four existing customers for terms up to 15 years. The Direct FuelCell (DFC) power plants are owned by the customers and under the service agreements, FuelCell Energy will continue to operate and maintain the plants.
  • On May 16, 2012, FuelCell Energy, Inc. announced that its German subsidiary, FuelCell Energy Solutions GmbH, is acquiring select assets from MTU Friedrichshafen GmbH, a subsidiary of Tognum AG.
  • On May 2, 2012, FuelCell Energy, Inc. announced the completion of the previously announced $30 million investment by POSCO Energy. Under the terms of the agreement, POSCO Energy purchased 20,000,000 shares of FCEL common stock at a price of $1.50 per share for proceeds of $30 million.
  • On March 27, 2012, FuelCell Energy, Inc. announced the completion of an underwritten public offering of 23.0 million shares of its common stock, including 3.0 million shares sold pursuant to the full exercise of an over-allotment option previously granted to the underwriters.
  • On February 28, 2012, FuelCell Energy, Inc. announced the signing of a multi-year service agreement with Southern California Edison (SCE) to operate and maintain the 1.4 megawatt Direct FuelCell® power plant previously purchased and located at California State University - San Bernardino.
  • On February 22, 2012, FuelCell Energy, Inc. announced a memorandum of understanding to form a German-based joint venture with Fraunhofer IKTS (Institute for Ceramic Technologies and Systems) to develop the market in Europe for Direct FuelCell (DFC) stationary power plants.

Insider Trading

In the last 3 months there were 21,028 shares sold by insiders and 20,572,969 shares bought by insiders, including the 20M shares bought by POSCO on April 30, 2012.


FuelCell Energy operates in Industrial Electrical Equipment industry. The company could be compared to A123 Systems Inc. (AONE), American Superconductor Co. (NASDAQ:AMSC), Ballard Power Systems Inc. (NASDAQ:BLDP) and Cummins Inc. (NYSE:CMI). Below is the table comparison of the most important ratios between these companies and the industry.

Here are the price movements for the last 6 months for these companies:

FCEL Chart

FCEL data by YCharts

Here are the latest developments on the named competitors:

  • On May 23, 2012, American Superconductor Corporation announced that Inox Wind Limited, part of India's Inox Group of Companies, placed a follow-on order for 50 of AMSC's electrical control systems (ECS) for Inox's 2 megawatt (MW) wind turbines. AMSC expects to ship all of these systems to Inox in 2012.
  • On May 15, 2012, A123 Systems Inc announced that due to the limitations with respect to manufacturing ramp, it anticipates revenue in fiscal 2012 will be below prior expectations and consistent with those communicated last week.
  • On May 13, 2012, Ballard Power System was upgraded by analysts at Ardour Capital from a "hold" rating to an "accumulate" rating in a research report issued to clients and investors.
  • On May 11, 2012, A123 Systems Inc announced a private offering of $50 million aggregate principal amount of its Senior Unsecured Convertible Notes and Warrants to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Act).
  • On May 10, 2012, for the quarter ended March 31 (Q1), Ballard Power Systems whiffed on revenues and missed expectations on earnings per share.
  • On May 2, 2012, Cummins Inc. announced that it has signed an agreement to acquire the assets associated with the emissions control products of Hilite International.
  • On May 1, 2012, Cummins Inc. reaffirms FY 2012 guidance.
  • On April 30, 2012, Cohen Milstein Sellers & Toll PLLC announced that it is conducting an investigation to determine whether A123 Systems, Inc. ("A123" or the "Company") and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
  • On April 24, 2012, Cummins Inc. announced that Cummins Filtration, a division of Cummins Inc. has signed an agreement to sell its North Plant (100,000 square feet) in Lake Mills, Iowa to the City of Lake Mills and donate the child care and fitness center facilities (30,000 square feet) to the city.
  • On April 10, 2012, American Superconductor Corporation announced it has filed an appeal with China's Supreme People's Court.

Technical Insight

FCEL has recently jumped from quarter lows. It is now trading above 21- and 50-week moving averages, as well as 21-, 50- and 200-day moving averages.

Sources: Yahoo Finance, Google Finance, CNBC, Marketwatch, Reuters, Forbes.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Industrial Electrical Equipment, Earnings
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