FuelCell -13% following disappointing Q2 results

|About: FuelCell Energy, Inc. (FCEL)|By:, SA News Editor

FuelCell Energy (FCEL) -12.8% premarket after FQ2 earnings and revenues fell short of estimates, with losses widening as expenses rose.

Though FCEL has been stuck in the red, revenue generally has increased as cheap natural gas drove down power production costs and demand rose, but overall revenue fell 10% to $38.3M in FQ2; product sales fell to $27.7M from $34.4M a year earlier, while service agreements and license revenue totaled $7.2M from $4.1M.

Gross margin fell to 4.2% from 5.5%, as product sales mostly were fuel cell kits and modules compared with higher margin complete power plant revenue in the year-ago period from the Bridgeport fuel cell park project.

Backlog totaled $342.8M at the end of FQ2 vs. $326.9M at the end of the previous quarter.

Issues in-line guidance for Q3, seeing revenues of $50M-$60M vs. $53M analyst consensus estimate.

Also: PLUG -5%, BLDP -3.3% premarket.