NEW YORK ( TheStreet) -- FuelCell Energy (FCEL - Get Report) managed to ease investors' concerns in its most recent quarter. After the bell Monday, the developer of clean-energy fuel cell reported its first-quarter financials which demonstrated it has been able to stem widening losses and boost sales.
In premarket trading Tuesday, shares surged 18.8% to $4.67.
In the three months to January, the Danbury, Conn.-based business reported total sales of $44.4 million, a 22% year-over-year increase and $1 million higher than analysts surveyed by Thomson Reuters expected.
Product sales grew nearly 19% to $34.5 million and advanced technologies contracts more than doubled to $5 million on higher engagement with the U.S. Department of Energy Solid State Energy Conversion Alliance (SECA).
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The company reported an adjusted loss of $9 million, or 4 cents a share, compared with a loss of $12.5 million, or 7 cents a share, in the year-ago period. FuelCell has managed to limit losses by paring back administrative and selling expenses and reducing system costs by consolidating its plant functions. Earnings were in line with analysts' expectations.
The company has been on a tear lately (up more than 100% since last Monday) after fellow alternative energy developer Plug Power (PLUG - Get Report) announced an expanded contract with Wal-Mart (WMT - Get Report). The news indicated the use of stationary fuel cells was becoming increasingly mainstream.
"We remain on track for closing multiple megawatts of orders and my confidence level is high as we have negotiated contracts for projects where we are waiting on final customer or regulatory approval," said FuelCell CEO Chip Bottone in a statement.
As of Jan. 31, FuelCell's sales in backlog totaled $326.8 million.