FuelCell Pulls Back On Q4 Results, Plug Power Moves In Sympathy

FuelCell Energy Inc FCEL shares opened Thursday's session sharply lower following the release of its fourth-quarter results before mounting a recovery. Sympathy moves were seen in most alternative energy stocks, including Plug Power Inc PLUG, Bloom Energy Corp BE and Ballard Power Systems Inc BLDP.

What Happened: FuelCell reported Thursday ahead of the market open with fourth-quarter revenue of $16.99 million, up 54% year-over-year. Service and license revenue climbed 623% to $5.4 million and advanced technology contract revenues rose 48% to $6.4 million, while generation revenue slid 6% to $5.1 million. Notwithstanding the strong growth, revenue missed the consensus estimate of $17.05 million.

The backlog as of Oct. 31 stood at $1.29 million, down 2.5% year-over-year.

Reflecting the top-line growth, the net loss per share narrowed from 23 cents in the fourth quarter of 2019 to 8 cents in the fourth quarter of 2020. The adjusted EBITDA loss narrowed from $10.96 million to $8.55 million.

Related Link: Why Plug Power's Lead In Fuel Cell, Hydrogen Space Could Create 'Outsized Winner'

"Having made progress toward this goal, and as we look toward the second year of our journey, we intend to focus on operational and commercial excellence, while maintaining prudent capital deployment, reducing our overall cost of capital and focusing on lean resource management, cost reduction opportunities, and developing and defining a clear strategic roadmap for the Company," FuelCell CEO Jason Few said in a statement. 

Why It's Important: Most alternative energy stocks have run up sharply, as investors flocked into these stocks on the premise that these are the future. To justify the lofty valuations, alternative energy companies have to deliver consistently.

The slight revenue miss from FuelCell could shake some of the investor confidence in the company.

BE, BLDP, FCEL, PLUG Price Action: FuelCell shares were up 3.76% at $17.39 at last check Thursday. Bloom Energy was down 1.81% at $37.88. Ballard Power was adding 2.02% to $35.97. Plug Power was adding 3.54% to $64.71. 

Related Link: Plug Power Rallies On JV Partnership With Renault For Hydrogen-Powered Vehicles In Europe

Photo courtesy of FuelCell.