Analysts are expecting the integrated fuel cell company, which designs, manufactures, sells, and installs stationary fuel cell power plants, to report an earnings per share loss of 2 cents, on revenue of $52.87 million for the latest quarter.
Shares of FuelCell Energy are falling by 6.80% to $1.51 in late morning trading on Monday.
For the same period last year FuelCell posted an adjusted net loss of 5 cents per basic and diluted share, on total revenue of $55.2 million.
Separately, TheStreet Ratings team rates FUELCELL ENERGY INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FUELCELL ENERGY INC (FCEL) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Electrical Equipment industry. The net income has decreased by 24.3% when compared to the same quarter one year ago, dropping from -$5.61 million to -$6.98 million.
- The gross profit margin for FUELCELL ENERGY INC is currently extremely low, coming in at 11.77%. Regardless of FCEL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, FCEL's net profit margin of -16.16% significantly underperformed when compared to the industry average.
- Net operating cash flow has decreased to -$15.92 million or 13.78% when compared to the same quarter last year. Despite a decrease in cash flow of 13.78%, FUELCELL ENERGY INC is in line with the industry average cash flow growth rate of -21.40%.
- FCEL has underperformed the S&P 500 Index, declining 8.10% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, FUELCELL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: FCEL Ratings Report