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Tuesday, December 5, 2023

FuelCell Energy Inc. (FCEL) Stock Surges Following Disclosure of Promising Q3 2021 Financial Reports

FuelCell Energy Inc. (FCEL) stock prices surged by 17.79% some time after market trading commenced on September 14th, 2021. This brought the price per share up to USD$6.62 early on in the trading day.

FCEL Stock’s Revenue Reports

Revenues for the third quarter of fiscal 2021 came out to USD$26.8 million. This represents a 43% year-over-year increase from Q3 2020 reports. The yearly gains were largely driven by a USD$7.2 million increase in FCEL stock’s service agreements and license revenues. These increases, in turn, were largely attributable to the fact that there were more module exchanges in the 2021 quarter as compared to the 2020 quarter.

Gross Profit Margins

FCEL stock’s gross profit for the third quarter of fiscal 2021 was reported at a total of USD$1.1 million. This is comparable to the gross loss of USD$3.1 million reported in the prior-year quarter. The year-over-year difference was largely driven by a higher service gross margin. This, in turn, was a result of an increase in new module exchanges for projects with higher margins. Further consolidating the yearly increase was improved generation gross margin, resulting from an increase in revenues and a decrease in depreciation expense. Lower manufacturing variances also drove the increase in gross profit, resulting from increased production volumes.

Operating Expenses

Operating expenses for RDHL stock’s third quarter of fiscal 2021 were reported at USD$11.7 million. This is up from the USD$7.6 million reported in the prior-year quarter. Administrative and selling expenses for the 2021 quarter included legal expenses. These expenses were associated with tax equity financings and additional share-based compensation expense in the amount of USD$0.5 million.

FCEL Stock’s Net Loss

FCEL stock reported a net loss in the amount of USD$12 million for the third quarter of fiscal 2021. This is an improvement from the USD$15.3 net loss reported in the prior-year quarter. The year-over-year increase was largely driven by a higher gross margin for Q3 2021 as compared to Q3 2020. Further compounding the improvement was lower interest expense.

Future Outlook for FCEL Stock

The company reported a promising quarter, as evidenced by the strength of its financial reports for Q3 2021. FCEL stock is keen to maintain the momentum it has generated through the upcoming quarters. Current and potential investors are hopeful that management will be able to continue the company’s trajectory of success. This is hoped to usher in consistent increases in shareholder value over the long term.

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