Yahoo Finance FuelCell Energy, Inc. (NASDAQ:FCEL) Just Reported Earnings, And Analysts Cut Their Target Price
FuelCell Energy, Inc. (NASDAQ:FCEL) investors will be delighted, with the company turning in some strong numbers with its latest results. FuelCell Energy beat expectations with revenues of US$22m arriving 6.8% ahead of forecasts. The company also reported a statutory loss of US$0.07, 8.1% smaller than was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for FuelCell Energy
Taking into account the latest results, the most recent consensus for FuelCell Energy from nine analysts is for revenues of US$106.4m in 2024. If met, it would imply a huge 22% increase on its revenue over the past 12 months. Per-share losses are expected to explode, reaching US$0.27 per share. Before this earnings announcement, the analysts had been modelling revenues of US$105.0m and losses of US$0.27 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 6.2% to US$1.39. It looks likethe analysts have become less optimistic about the overall business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic FuelCell Energy analyst has a price target of US$2.00 per share, while the most pessimistic values it at US$1.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting FuelCell Energy's growth to accelerate, with the forecast 49% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that FuelCell Energy is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of FuelCell Energy's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple FuelCell Energy analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that FuelCell Energy is showing 3 warning signs in our investment analysis , you should know about...
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
