Fuel cell energy (NASDAQ:FCEL) Shares were up 7% as of 11:10 a.m. ET Wednesday on what seems like pretty dull news. This morning, the manufacturer of stationary fuel cells for off-grid electricity production set a date for the release of its fourth-quarter 2024 earnings results. Earnings will be announced next Thursday, December 19 at 10 a.m. ET.
This Thursday will be a big day for FuelCell, as the company has undergone some major changes. On November 7, FuelCell announced plans to revive its lagging stock price and avoid delisting from the Nasdaq stock exchange by executing a 1-for-30 reverse stock split. This traded one expensive FuelCell share for every 30 cents of FuelCell shares that investors held at the time.
Start your morning smarter! Wake up with Breakfast news in your inbox every market day. Register for free »
If FuelCell had not reverse split its shares, investors would have kept them An The FuelCell stock worth $12 today would instead own 30 shares costing about $0.40 each.
A week later, FuelCell took the next step by announcing cost savings and growth initiatives to (hopefully) boost the stock price a little less artificially. Aiming to “significantly reduce” operating costs by around 15% by 2025, FuelCell said it would lay off 17% of its employees and cut research and development spending – while working to develop new markets for the sale of CO2 to the food and beverage industry, and also make new investments in “molten carbonate technology” and “solid oxide technology”.
Can FuelCell successfully make these kinds of technological advances even as it cuts back on R&D? I admit to being skeptical, but FuelCell has yet to give it a try.
Analysts predict for the upcoming earnings report that FuelCell will report as much as $6.90 in losses per share for fiscal 2024 (i.e. FuelCell will lose about half of what its own shares are now worth), on a 17% decline in revenue. All the research and development in the world won’t make much difference if FuelCell runs out of money and has to close its stores.
I hope next week’s earnings numbers show that the company is making some progress.
Have you ever felt like you missed the boat on buying the most successful stocks? Then you would like to hear this.
On rare occasions, our expert team of analysts provides a “Double Down” Stocks recommendation for companies they think are about to pop. If you’re worried that you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
-
Nvidia: If you had invested $1,000 when we doubled in 2009, you would have $350,239!*
-
Apple: If you had invested $1,000 when we doubled in 2008, you would have $46,923!*
-
Netflix: If you had invested $1,000 when we doubled in 2004, you would have $492,562!*
We’re currently issuing ‘Double Down’ warnings for three incredible companies, and another opportunity like this may not happen anytime soon.
See 3 “Double Down” Stocks »
*Stock Advisor returns December 9, 2024
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why FuelCell Energy Stock Gained a Lucky 7% was originally published by The Motley Fool
