Fuel cell manufacturer, FuelCell Energy Inc. (FCEL) reported fourth-quarter fiscal 2014 adjusted loss of 2 cents per share, narrower than the Zacks Consensus Estimate of a loss of 3 cents and the prior-year loss of 6 cents per share.
In fiscal 2014, the loss stood at 13 cents per share, narrower than the Zacks Consensus Estimate of a loss of 14 cents. The yearly loss was also narrower than the year-ago loss of 19 cents per share.
Revenue
In the fourth quarter of fiscal 2014, FuelCell Energy's total revenues were $54.4 million, surpassing the Zacks Consensus Estimate of $53 million by 2.6%. Total revenues however decreased 1.4% from $55.2 million a year ago.
Lower service and license revenues primarily led to the decline in quarterly revenues. This was partially offset by higher revenues from product sales and a rise in advanced technologies contract revenues.
Revenues in fiscal 2014 were $180.3 million, down 3.9% from $187.7 million in the prior fiscal.
Highlights of the Release
In the quarter under review, FuelCell Energy's total cost of revenues was $48.5 million, down 7.8% from $52.6 million in the prior-year quarter.
The company reported a quarterly gross profit of nearly $6.0 million compared with $2.6 million a year ago, a surge of 130.8%.
Total operating expenses in the quarter were $10.9 million, up 14.7% from the year-ago figure, primarily due to higher administrative and selling expenses.
FuelCell Energy's interest expenses dropped 62.5% year over year to $0.66 million from $1.76 million a year ago.
Total backlog as of Oct 31, 2014, increased 6% to $333.9 million from $355.4 million in the prior quarter.
Financial Update
As of Oct 31, 2014, cash and cash equivalents were of $83.7 million compared with $67.7 million as of Oct 31, 2013.
Long-term debt and other liabilities as of Oct 31, 2014, were $13.4 million as against $52.8 million as of Oct 31, 2013.
Peer Release
Plug Power Inc. (PLUG) reported third-quarter adjusted loss of 4 cents per share, wider than the Zacks Consensus Estimate of a loss of 3 cents.
Our View
FuelCell Energy once again reported in the red. However, the company managed to post quarterly and yearly losses narrower than the Zacks Consensus Estimate.
FuelCell Energy is currently focused on expanding its margins with the help of cost cutting measures. Gross margin in the fiscal fourth quarter was 10.9% compared with 4.7% a year ago.
The company has been investing consistently in R&D to come out with products that are more environmentally friendly. FuelCell Energy is under the process of developing multi-megawatt utility projects for supporting the grid. The 15 MW project in Bridgeport owned by Dominion Resources, Inc. (D) has been a success and exhibits FuelCell Energy's product development capabilities.
FuelCell Energy currently has a Zacks Rank #3 (Hold). NextEra Energy Partners, LP (NEP), another stock in the alternate energy space, holds a Zacks Rank #2 (Buy).
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