FuelCell Energy (NASDAQ:FCEL) Inc stock declined after it reported financial results for the second quarter of fiscal year 2023 that beat Wall Street estimates on the revenue front but losses widened.
For its fiscal 2Q ended April 30, the Danbury, Connecticut-based fuel cell company reported a loss of $0.09 per share on revenue of $38.3 million. The consensus estimate was a loss of $0.08 per share on revenue of $25.5 million. Revenue grew 134.1% on a year-over-year basis.
Investors reacted to the losses, sending FuelCell shares down 2.5% to $2.32 on the tech-dominated Nasdaq in afternoon trading.
“For the 2Q of fiscal year 2023, we reported strong revenue growth, with revenue more than double that of the comparable prior year quarter,” said FuelCell CEO Jason Few.
“Revenue growth in the quarter was largely driven by revenues from long-term service agreements, primarily relating to the new module exchanges at the plant owned by Korea Southern Power Company (KOSPO) in Korea that were completed during the quarter.”
The company said the Toyota project in Long Beach, for which biogas was secured during the quarter through a contract with Anew Climate acting as fuels marketer to Anaergia Inc, is advancing towards achieving commercial operations.
“We anticipate that commercial operations will be achieved in our third fiscal quarter,” said Few.
The company’s backlog decreased by 23% to $1.02 billion as of April 30, 2023, compared to $1.33 billion as of April 30, 2022, due to the decision to not move forward with certain generation projects.
FuelCell Energy (NASDAQ:FCEL) is an integrated clean energy technology company which manufactures, sells, installs, operates and services highly efficient fuel cell power plants for distributed power generation.
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