FuelCell Power (NASDAQ: FCEL) inventory jumped 7% by way of 11:10 a.m. ET Wednesday on what seems to be somewhat ho-hum information. This morning, the producer of stationary gasoline cells for off-grid energy manufacturing set a date for reporting its This autumn 2024 earnings outcomes. Earnings will come out subsequent Thursday, Dec. 19, at 10 a.m. ET.
Time for a reset at FuelCell
Subsequent Thursday will likely be an enormous day for FuelCell, as the corporate has been present process some massive adjustments. On Nov. 7, FuelCell introduced plans to revive its lagging inventory worth and keep away from Nasdaq delisting by working a 1-for-30 reverse stock split. This traded one high-priced FuelCell share for each 30 penny inventory FuelCell shares its traders had been holding on the time.
Had FuelCell not reverse-split its shares, traders who maintain one FuelCell share value $12 as we speak would as an alternative personal 30 shares costing about $0.40 every.
One week later, FuelCell took the following step of saying price cuts and progress initiatives to (hopefully) get its inventory worth transferring larger a bit much less artificially. Aiming to “considerably cut back working prices” by about 15% in 2025, FuelCell stated it might lay off 17% of its employees and slash its research and development spending — similtaneously it really works to develop new markets for promoting CO2 to the meals and beverage trade, and make new investments in “molten carbonate know-how” and “strong oxide know-how” as properly.
Is FuelCell inventory a purchase?
Can FuelCell efficiently make these sorts of technological developments even because it cuts spending on R&D? I admit I am skeptical — however FuelCell nonetheless must strive.
Analyst forecasts for the upcoming earnings report see FuelCell reporting as a lot as $6.90 in per-share losses for fiscal 2024 (i.e., FuelCell will lose roughly half of what its personal inventory is now value), on a 17% decline in gross sales. All of the R&D on the earth will not make a lot distinction if FuelCell runs out of cash and has to shut up store.
This is hoping subsequent week’s earnings present the corporate is making some progress.
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Rich Smith has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
