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Bloom Energy: Q3 2019 Solid, Story Evolving Favorably

Nov. 12, 2019 3:48 PM ETBloom Energy Corporation (BE) Stock21 Comments
Steve Zachritz profile picture
Steve Zachritz
4.49K Followers

Summary

  • Bloom beat 3Q19 expectations.
  • The story is increasingly about reliability and new applications.
  • Bloom addressed recent concerns over fuel cell life.

This is a Z4 Research post call quick note. We have previously written back ground pieces on Bloom and didn't take a position here until the name fell from the good graces of the green energy space following the second quarter call. Both of those pieces are available on our website (Zman's Energy Brain ~ oil, gas, stocks, etc...). They can also be accessed here along with other material on our Seeking Alpha blog site (backgrounder 7/17/19) and here (post fall and 2Q19 update).

BE Reported 3Q19 Beat On Upper End of Range Acceptances; Demonstrating Notable Margin Strength; Future Continues To Evolve and Brighten

The 3Q19 Numbers:

  • Record revenue quarter on record acceptances.
  • Margins were stronger than expected. Gross margin has not been that high since early 2018. EBITDA margin is at new highs for BE as a public company. In summary, average selling prices were better than expected on favorable mix, TISC was better than expected, and therefore they exceeded upfront margin guidance.

Guidance:

  • 4Q19 Acceptances: 355 to 385
  • 4Q19 ASP: $5,920 to $6,220 per kW,
  • 4Q19 TISC: $4,250 to $,550 per kW.
  • 2020 guidance, which disappointed with the 2Q19 release, was not reversed with this call and you'll note in the cheat sheet below that the Street has market 2020 to 2019 levels for revenue and EBITDA.

Highlights: The call was upbeat (both from a management and sellside perspective) and much of what follows was not covered in the usual quarterly press release.

California and North East Power Outage Thoughts:

  • The recent power outages in California were wide spread, multi million customer events - they were completely unprecedented. These events are growing in scale. And they can to an extent be addressed via micro grids of which Bloom has 89 in operation now. We've written on these in past articles on the

This article was written by

Steve Zachritz profile picture
4.49K Followers
Thanks for your interest in Z4 Energy Research. As of January 2021, Tipranks placed us in the top 2% of all financial bloggers and top 5% of overall experts. If you would like more in depth discussions on oil, natural gas, wind, solar, fuel cells, and other renewables, please contact us at zman@zmansenergybrain.com. We have covered energy at zmansenergybrain.com since 2006 posting 6 days a week and have been in the markets since the early 1990s. We post weekly slide shows on the oil and natural gas inventory reports and have daily pieces on individual names as well as group reports within a number of energy segments (Gassy Players, Permian Players, etc). Plus, Z is standing by essentially 24/7 to answer your energy questions. So come give us a try. IF you see our free pieces on Seeking Alpha rest assured that it was long ago written up, watched, mulled, and written up again on our site before we put a piece in the public free space. Also note that while we don't give investment advice we do tell you what we are thinking and when we buy and sell (on the site and via email) and show you our entire trading history (the trading blotter). And the site is fully searchable, by ticker and topic, again, back to 2006. So thanks for the follow and we hope to see your over at our site. Best Regards, Z Z4 Energy Research (Zman's Energy Brain)

Analyst’s Disclosure: I am/we are long BE. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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