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Disappointing monetary outcomes from Fuel Cell Energy slammed the inventory and despatched shares of different hydrogen-related corporations decrease as effectively.
Fuel Cell (ticker: FCEL) reported $14 million in gross sales for its fiscal second quarter, down from $14.9 million within the prior quarter and beneath the $18.9 million reported in the identical quarter a yr earlier. Wall Road was in search of $18.9 million in gross sales, so it was a giant miss.
The corporate is one in all a quantity that stand to learn as fuel-cell know-how, utilizing hydrogen to supply electrical energy with out greenhouse-gas emissions, meets a rising share of the world’s power wants. Fuel Cell makes stationary tools that competes with conventional turbines from the likes of
(CAT). Other corporations are aiming to make use of the know-how in automobiles and vehicles.
Fuel Cell isn’t worthwhile but, and Wall Road doesn’t mission income till 2025, so . earnings matter lower than gross sales. Nonetheless, the corporate reported a lack of 6 cents per share, whereas analysts had been anticipating a lack of 5 cents.
Regardless of the income shortfall, CEO Jason Few sounded an upbeat tone on the corporate’s earnings convention name. “We stay optimistic concerning the persevering with momentum behind the worldwide power transition and anticipate to play an necessary function with our main applied sciences,” mentioned Few. He spoke about assist from the Biden administration for hydrogen know-how in addition to alternatives for brand spanking new enterprise throughout the globe.
A problem is that hydrogen, the gas in a gas cell, is dear to supply relative to merchandise resembling diesel. Prices want to return down for sellers of fuel- cell know-how resembling Fuel Cell Energy to take off.
Additionally falling in response to the Fuel Cell Energy outcomes had been
(PLUG), Nikola (NKLA), and Ballard Energy (BLDP). All three need to apply hydrogen fuel-cell know-how to functions sometimes powered by diesel gas. These three shares had been down 3%, 3%, and a pair of%, respectively, in noon buying and selling.
After a giant run up in 2020, Fuel Cell Energy inventory has been weak up to now in 2021. Shares gained 345% in 2020 however are down about 11% yr thus far, leaving them about 67% beneath their February 52-week excessive.
All 4 hydrogen-technology shares have struggled lately. The quartet is down 65%, on common, from their 52-week highs.