Roth Capital Affirms Rating, Price Target on FuelCell (FCEL) Amid Restructuring, Prelim. Results
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Roth Capital affirms FuelCell Energy (Nasdaq: FCEL) at Neutral with a price target of $2 following restructuring news and preannounced results.
The firm noted today:
- FuelCell Energy preannounced F4Q16 (Oct.) results well below consensus. The company preannounced F4Q16 (Oct) revenue of $23.0-$25.0m vs. our forecast of $56.0m and the $52.3m consensus. We believe the delta came from a 5.6MW project with Pfizer, where FCE arranged a sale-leaseback with a financial institution that will be recognized over the 20 year PPA. We expect management to give further color on its year-end conference call, which will likely be held in early-January.
- Management is taking necessary actions to reduce FCE's operating costs. The company is reducing materials spend and it is lowering its global headcount by 96 positions, or approximately 17%. FCE is also taking actions to reduce annual operating costs by $6m, or ~15% of estimated FY16 operating expenses. Management indicated that FCE will move forward with a lower annual production rate of 25MW from the prior rate of 50MW.
- Management indicated that contracted backlog totaled over $400m as of October 31.
Estimate changes: FY16 revenue from $139.8 million down to $107.8 million and EPS from ($1.63) to ($1.74).
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Credit Suisse Downgrades NetApp (NTAP) to Underperform
- Wedbush Raises Price Target on Francesca's (FRAN) Following 3Q Report
- Deutsche Bank Downgrades MGM Growth Properties (MGP) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesRoth Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!