FuelCell Energy ( NASDAQ: FCEL ) stock slumped 17.2% to an over two-year low on Tuesday as the firm's Q4 results came in below estimates and its backlog shrank after it backed out of two projects in Hartford.
Q4 EPS was -$0.11 vs. -$0.07 in Q4 2021 as operating expenses nearly doubled to $27.5M.
Administrative and selling expenses increased 43% Y/Y to $15.3M on higher sales, marketing and consulting costs.
R&D expenses grew threefold to $12.2M on increased spending on commercial development efforts for FuelCell's ( FCEL ) solid oxide platform and carbon capture solutions.
FuelCell's ( FCEL ) backlog was $1.09B as of October 31 vs. $1.29B as of October 31, 2021 as it decided to back out of certain generation projects.
Generation backlog narrowed 14.2% as the company will not proceed with development of the 7.4 MW and 1 MW Hartford projects given their then-current economic profile.
FuelCell ( FCEL ) intends to modify the PPAs relating to the Hartford projects, but there can be no assurance of the same.
Revenue more than doubled to $39.2M, with product revenues at $24M as a result of module sales to Korea Fuel Cell.
The fuel cell maker projected total capex of $60M-$90M and total investment of $45M-$65M in project assets in the generation portfolio backlog in FY23.
More than 12.1M shares changed hands as of 11.32 am ET vs. average trading volume of ~10M shares.
Shares of FuelCell ( FCEL ) declined 25.4% in the last six months.
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FuelCell stock slumps 17% on earnings miss, smaller backlog after Hartford project exit