FuelCell stock sinks after wider-than-expected loss, while revenue more than doubles to top forecasts

Shares of FuelCell Energy Inc. FCEL,
sank 9.0% in premarket trading Thursday, after the maker of fuel cells for clean electric power generation reported a wider-than-expected fiscal first-quarter loss, even as sales more than doubled to beat expectations. The net loss for the quarter to Jan. 31 narrowed to $ 41.4 million, or 11 cents a share, from a loss of $ 46.8 million, or 15 cents a share, in the year-ago period. The FactSet consensus for per-share losses was 5 cents. Revenue rose 113.7% to $ 31.8 million, well above the FactSet consensus of $ 26.3 million. The company recorded $ 18.0 million in produce revenue after none a year ago, as it delivered Ex Works six fuel cell modules to POSCO Energy subsidiary Korea Fuel Cell Co. under a settlement agreement, which requires KFC to order an additional eight modules by June 30. Cost of revenue rose 87.6% to $ 34.7 billion. FuelCell’s stock has lost 8.8% over the past three months through Wednesday, while the S&P 500 SPX,
has dropped 9.2%.

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