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FuelCell Energy Q4 Loss Wider than Expected, Revenues Top

FuelCell Energy Inc.FCEL reported fourth-quarter fiscal 2015 adjusted loss of 38 cents per share, much wider than the Zacks Consensus Estimate of a loss of 27 cents. The company had reported a loss of 24 cents per share in the prior-year quarter.

Fuelcell Energy Inc. - Earnings Surprise | FindTheBest

The yearly loss stood at $1.33 per share while the Zacks Consensus Estimate was pegged at a loss of 66 cents. The prior year loss figure was $2.02.

Revenue Details

In the fourth quarter of fiscal 2015, FuelCell Energy's total revenues were $51.5 million, surpassing the Zacks Consensus Estimate of $47 million by 9.6%. Total revenues decreased 5.3% from $54.4 million a year ago.

Lower contribution from the company's service agreements and license business and advanced technologies contract revenues primarily led to a drop in quarterly revenues. This was however partially offset by higher product sales.

Yearly revenues came in at $163.1 million, missing the consensus estimate of $246 million by 33.7%. Revenues also saw a decline of 9.5% from the prior-year level.

Highlights of the Quarterly Release

In the quarter under review, FuelCell Energy's total cost of revenues was $48.3 million, marginally down from $48.5 million recorded in the prior-year quarter.

The company reported quarterly gross profit of $3.1 million compared with $6 million a year ago.

Total operating expenses in the quarter were $11 million, almost on par with the year-ago figure of $10.9 million.

FuelCell Energy's interest expenses increased 15% year over year to $0.76 million from $0.66 million a year ago.

In fiscal 2015, total backlog increased 14.2% to $381.4 million from $333.9 million in the prior fiscal. Product sales, service and advanced technologies contracts backlog was $90.8 million, $254.1 million and $36.5 million, respectively.

Financial Details

As of Oct 31, 2015, FuelCell Energy reported cash and cash equivalents and restricted cash of $85.8 million, up from $77.7 million as of Oct 31, 2014.

Total liabilities were $122.6 million as of Oct 31, 2015, compared with the prior-year figure of $122.3 million.

The company's capital expenditures totaled $3.1 million in the quarter.

Peer Releases

Covanta Holding Corporation CVA posted third-quarter 2015 earnings of 22 cents per share, beating the Zacks Consensus Estimate of 20 cents. The company had posted reported earnings of 26 cents in the prior-year quarter.

U.S. Geothermal Inc. HTM reported third-quarter 2015 earnings of 1 cent per share, in line with the Zacks Consensus Estimate.

Zacks Rank & Other Key Picks

FuelCell Energy currently has a Zacks Rank #2 (Buy). Another favorably ranked stock in the solar space is JA Solar Holdings JASO , sporting a Zacks Rank #1 (Strong Buy).

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JA SOLAR HOLDGS (JASO): Free Stock Analysis Report

COVANTA HOLDING (CVA): Free Stock Analysis Report

FUELCELL ENERGY (FCEL): Free Stock Analysis Report

US GEOTHERMAL (HTM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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