Small Cap FuelCell Energy Q1 Earnings Report: Stabilized?

The Q1 2017 earnings report for small cap fuel cell stockFuelCell Energy Inc (NASDAQ: FCEL) is scheduled forbefore the marketopens onThursday (March 9th). Last December,FuelCell Energy announced a business restructuring to reduce costs and align production levels with current levels of demand in a manner that is consistent with the Companys long-term strategic plan.The Company said it cut 96 jobs, or 17% of its workforce, and has halved production to 25 megawatts a year in order to position for delays in order flow.

A technical chart for small cap FuelCell Energy shows shares falling through a support level in October and having stabilized over the past month:

A long term performance chart shows shares of small cap FuelCell Energy along withalternative energy or fuel cell stocks like Ballard Power Systems Inc (NASDAQ: BLDP), Hydrogenics Corporation (NASDAQ: HYGS) and Plug Power Inc (NASDAQ: PLUG) all peaking in 2014 with some signs of stabilization early last year before they drifted a bit lower:

Around mid-January, FuelCell Energy reportedthat Q4 revenues were $24.5 million versus $51.5 million as product sales totaled $8.4 million versus $43.8 million; service agreements and license revenues totaled $11.4 million versus $5.5 million (with the increase due to a number of service agreements that commenced in 2016, a greater number of module replacements under service contracts, and electricity sales from power purchase agreements);andadvanced technologies contract revenues totaled $4.7 million versus $2.1 million.The net loss attributable to common shareholders totaled $13.7 million versus $9.7 million as cash, cash equivalents, restricted cash and financing availability totaled $156.5 million. Total backlog was $432.3 million as of October 31, 2016 compared to $381.4 million as of October 31, 2015.

The CEO commented: “We are focused on developing and closing projects as we take near-term actions to reduce spending and our cost structure.”

Finally, here is a quick recap of small cap FuelCell Energys recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page:

1/31/20164/30/20167/31/201610/31/2016
EPS Est. -0.35 -0.4 -0.39 -0.37
EPS Actual -0.48 -0.56 -0.38 -0.41
Difference -0.13 -0.16 0.01 -0.04
Surprise % -37.10% -40.00% 2.60% -10.80%
EPS TrendCurrent Qtr. (Jan 2017)Next Qtr. (Apr 2017)Current YearNext Year
Current Estimate -0.32 -0.29 -1.1 -0.81
7 Days Ago -0.32 -0.29 -1.1 -0.81
30 Days Ago -0.32 -0.29 -1.1 -0.81
60 Days Ago -0.35 -0.29 -1.15 -0.59
90 Days Ago -0.35 -0.29 -1.14 -0.59

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