FuelCell Energy (FCEL) Stock Gains Ahead Of Earnings

FuelCell Energy FCEL Stock News

After seeing strong gains in the market yesterday following a settlement with POSCO Energy, FuelCell Energy Inc (NASDAQ: FCEL) is continuing its path for the top today. The nearly 5% early gains come as earnings are expected after the closing bell. Here’s what’s going on:

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Recent News Out Of FCEL Suggests A Positive Earnings Release To Come

As mentioned above, Investors learned of the POSCO Energy settlement yesterday. While the settlement is positive news, there wasn’t much information with regard to the terms of the settlement available in the SEC filing. As such, there’s a good chance that investors will learn more about the details after the bell when the quarterly results are released.

There is also quite a bit to talk about from an operational perspective. After all, FCEL commissioned the world’s most advanced and flexible solid oxide full cell project in the United States during the second quarter. This move helps to further the company’s progress with regard to commercializing its solid-oxide platform.

The company also announced that it started a project at a United States Navy Submarine Base in Groton, CT duing the quarter. Should this project go well, it could give way to further government contracts from similar military bases across the United States.

Losses Have Been Shrinking

While FCEL is likely to continue operating at a loss, those losses are shrinking. Taking a look at the company’s earnings page on the Nasdaq website shows that the company’s losses have shrank for the last four consecutive quarters. Here’s what we’ve seen:

  • Q2 2018 – Losses came in at $2.76 per share.
  • Q3 2018 – Losses came in at $2.40 per share.
  • Q4 2018 – Losses came in at $2.28 per share.
  • Q1 2019 – Losses came in at $2.16 per share.

Considering the trend that we’ve seen over the last four quarters, there’s a strong chance that losses continued to shrink in the second quarter of 2019.

The Stock Could Climb Over $1 On A Positive Report

If the company’s second quarter results are positive, the FuelCell could see tremendous gains in value. This target was largely set by the options market.

In fact, July 19, 2019 $1.00 call options have seen some serious volatility as of late. This suggests that investors are expecting that FCEL shares will grow to be worth more than $1.00 per share by July 19.

Should the earnings report prove to be positive, it could act as the catalyst that pushes the stock past this threshold.

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