A Look At Alternative Energy Company FuelCell Ahead Of Q4 Earnings

FuelCell Energy Inc. FCEL is scheduled to report fourth-quarter earnings before the opening bell Jan. 21.

A Snapshot Of FuelCell Ahead Of The Print: Shareholders of the hydrogen stock have have enjoyed an impressive run over the last two months.

From Nov. 13, 2020 through Jan. 13, the climbed over 634% as investors gained excitement for the alternative energy sector following Joe Biden's presidential election win.

Similar companies in the sector such as Ballard Power Systems Inc. BLDP and Plug Power Inc. PLUG saw similar rallies during the same time frame.

All three stocks took a downturn during Wednesday's session after Paul Coster, a JPMorgan analyst, downgraded FuelCell to Underweight with a $10 price target.

Why It Matters: FuelCell has strengthened its balance sheet and the company has a positive outlook.

After reporting an EPS miss of 17.64% in the third quarter last fall, FuelCell President and CEO Jason Few highlighted the green social and political movement that's expected to gain strength this decade.

"The hydrogen economy is currently enjoying unprecedented political and business momentum, and we are well positioned to capitalize on opportunities consistent with our goals," the CEO said in the company's third-quarter report Sept. 10.  

What's Next: Investors will be looking to see if FuelCell has continued to increase both its revenue and cash position as it continues to complete projects in its backlog.

FuelCell is well-positioned globally for growth, with planned expansions into Europe and Asia, a focus on EVs and recent partnerships with SK Group and Renault.

Although FuelCell's previous earnings reports have shown a trend of  decreasing revenues and increasing losses, the company could catch the eye of bullish analysts if it manages to beat estimates on Thursday.

FuelCell is estimated to report fourth-quarter revenue of $17.05 million and a loss of 7 cents per share. 

FCEL Price Action: FuelCell shares were up 14.32% at $18.11 ahead of the close Tuesday. 

Photo courtesy of FuelCell.