Shares of FuelCell Energy Inc. (FCEL, -1.37%) rose by 1.4% in premarket trading on Monday following the company’s release of its fiscal third-quarter financial results. Despite reporting a narrower loss than expected, the fuel cell technology company experienced a decline in revenue that was greater than forecasted.
Financial Highlights
For the quarter ending July 31, FuelCell Energy Inc. reported a net loss of $25.1 million, or 6 cents per share. This represents a decrease from the year-ago period where the company reported a net loss of $30.2 million, or 8 cents per share. These results surpassed the FactSet per-share loss consensus of 8 cents.
Moreover, the company’s revenue for the quarter dropped by 40.8% to $25.51 million, falling below the FactSet consensus of $27.7 million.
Decrease in Product Revenue
In their latest quarter, FuelCell Energy Inc. did not record any product revenue. This is in contrast to $18.0 million recognized in the previous year from module sales to Korea Fuel Cell Co. Ltd. The decline in revenue was primarily attributed to lower product revenue, which affected the overall performance of the company.
Cash and Investments
FuelCell Energy Inc. reported a strong financial position, with approximately $414 million in total cash and short-term investments at the end of the quarter.
Market Performance
Over the past three months, the stock of FuelCell Energy Inc. has declined by 38.2%. In comparison, the S&P 500 (SPX, +0.14%) has seen a growth of 3.7% during the same period.
FuelCell Energy Inc. will continue to navigate these market challenges and strive to improve its financials in the coming quarters.
