It was a disaster for FuelCell Energy (NASDAQ:FCEL) after the company posted its earnings report ahead of the bell Tuesday. The company posted losses all around, and investors rushed for the doors.
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Every major metric proved a miss. The company posted a loss in earnings per share, losing $0.11 per share against analyst projections calling for a loss of just $0.07 per share. Likewise, revenue also missed projections. The company posted $39.2 million, but consensus expectations called for $44.9 million instead.
As to why the company posted such losses, word from the company’s President and CEO, Jason Few, noted that the company is in a “period of transition.” Few remarked that there was a substantial investment made in growth projects, like plant and equipment capital. The company was also spending more on its talent and improving its technology. Further, FuelCell Energy also cut back on some of its current projects, reducing its backlog by roughly 15.4% against this time last year.
FuelCell Energy may have been hit hard today, but the consensus opinion from analysts is oddly benign, with a Hold rating from all three analysts. FuelCell Energy boasts 27.41% upside potential, thanks to its average price target of $3.37 per share.
