The shares of FuelCell Energy Inc. rose on Tuesday in high volume, after the fuel cell technology company pleasantly surprised investors by reporting a narrower-than-expected third-quarter fiscal loss and revenue that far exceeded expectations.
The company FCEL,
He reported before the opening bell net losses for the quarter through July 31 that fell $ 12.8 million, or 4 cents per share, from $ 16.1 million or 7 cents per share, in the same period of the previous year. This exceeded the FactSet consensus for losses per share of 5 cents.
This makes for a seven-quarter streak in which the company reported broader-than-expected losses, according to data provided by FactSet. The last time FuelCell exceeded expectations for the final result was in the second quarter of 2019.
Revenue rose 43.2% to $ 26.8 million from $ 18.7 million, above the $ 21.1 million FactSet consensus, driven by a $ 7.2 million increase in service contracts and license revenue. According to FactSet, this was the highest rate of income in terms of percentage above expectations in two years.
As the cost of revenue rose just 17.7% to $ 25.722 billion from $ 21.86 million, gross margin rose to a positive 4.1% from a negative 16.7%.
Shares soared to 34.2% in intraday trading before splitting gains to rise 17.7% in midday trading.
The volume increased to 172.3 million shares, compared to the full day average of about 17.5 million shares, and enough to make the shares the largest operations of the major North American stock exchanges. Americans.
The stock rally comes just two sessions after closing at a ten-month closing low of $ 5.58 on Sept. 10, which followed after a 80.0% drop from the high five-year $ 27.96 reached seven months ago.
“The global energy transition continues to accelerate and we believe FuelCell Energy is in a position to respond to these opportunities with our patented portfolio of platform solutions,” said Jason Few, chief executive.
FuelCell shares have fallen 40.8% to date, but have risen 192.6% over the past twelve months. In comparison, the S&P 500 SPX index,
has gained 18.7% this year and 31.8% over the past year.