Why FuelCell Energy (FCEL) Stock Is Up Today

What Happened?

Shares of carbonate fuel cell technology developer FuelCell Energy (NASDAQ:FCEL) jumped 14.5% in the afternoon session after continued positive momentum as the company reported mixed but largely positive fiscal third-quarter results that featured a significant earnings beat. 

Investors focused on the bottom line, where the company's adjusted loss of $0.95 per share was substantially better than the average analyst estimate of a $1.63 per share loss. The positive sentiment was further supported by a 97% year-over-year increase in revenue to $46.7 million. This surge was mainly driven by the Gyeonggi Green Energy (GGE) service contract in Korea, which contributed $24 million. The company also highlighted a 4% year-over-year increase in its backlog to $1.24 billion, signaling a solid pipeline of future business. Overall, the much smaller-than-anticipated loss appeared to outweigh a slight revenue miss against some expectations, fueling strong investor optimism.

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What Is The Market Telling Us

FuelCell Energy’s shares are extremely volatile and have had 84 moves greater than 5% over the last year. But moves this big are rare even for FuelCell Energy and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 18.4% on the news that the company reported mixed second-quarter results that featured a significant earnings beat, overshadowing a miss on revenue. 

The fuel cell power plant maker posted revenue of $46.74 million, an impressive increase of 97.3% from the same period last year, but this fell short of Wall Street's expectation of $49.58 million. However, investors focused on the bottom line, where the company's adjusted loss of $0.95 per share was substantially better than the average analyst estimate of a $1.63 per share loss. The positive sentiment was further supported by a 4% year-over-year increase in the company's backlog to $1.24 billion. The much smaller-than-anticipated loss appeared to outweigh the revenue shortfall, fueling strong investor optimism.

FuelCell Energy is down 43.9% since the beginning of the year, and at $5.82 per share, it is trading 63.1% below its 52-week high of $15.76 from September 2024. Investors who bought $1,000 worth of FuelCell Energy’s shares 5 years ago would now be looking at an investment worth $89.40.

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