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FuelCell shares drop 17% on missed earnings, smaller backlog after exiting the Hartford project


Hydrogen-powered fuel cell launched in LA

David McNew

Fuel cell energy (NASDAQ:FCEL) stock falls 17.2% to a two-year low on Tuesday as the company’s fourth-quarter results come in the estimate below and its backlog dropped after pulling out of two projects in Hartford.

Q4 EPS is -$0.11 vs -$0.07 in Q4 2021 when operating expenses nearly doubled to $27.5 million.

SG&A expenses increased 43% y/y to $15.3 million due to higher sales, marketing and consulting expenses.

R&D expenditures tripled to $12.2 million as a result of increased spending on FuelCell’s commercial development efforts (FCEL) solid oxide substrates and carbon recovery solutions.

FuelCell (FCEL) backlog was $1.09 billion on October 31 compared with $1.29 billion on October 31, 2021 when they decided to pull out of certain power generation projects.

The electricity backlog has decreased by 14.2% as the company will no longer develop the 7.4 MW and 1 MW Hartford projects based on their current economic situation.

Fuel cells (FCEL) intends to modify the PPA related to the Hartford projects, but cannot guarantee that.

Revenue more than doubled to $39.2 million, with product sales of $24 million thanks to module sales to Korea Fuel Cell.

The fuel cell maker projects a total investment of $60M-$90M and a total investment of $45M-$65M in project assets in its backlog of power generation in fiscal year 2023.

Over 12.1 million shares were traded as of 11:32 a.m. ET against an average trading volume of ~10 million shares.

FuelCell shares (FCEL) has fallen 25.4% over the past six months.

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