Bloom Energy stock price rises after results beat analysts’ estimates

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Bloom Energy Corporation posted a loss for the third quarter, but saw continued growth in fuel cell sales (acceptances).

The San Jose, CA company has its main manufacturing site in Newark. Bloom shares rose more than 16 percent to around $4.30 on earnings that in ahead of forecasts.

The company has been buffeted by a sharp decline in its stock price since its initial public offering. The stock rose at one point to more than $30 a share.

Highlights from the third quarter include:

  • Posted $233.5 million of revenue, GAAP gross margin of 22.9 percent and a net loss of $34.9 million. Excluding stock-based compensation, Bloom achieved non-GAAP gross margin of 25.8 percent and $40.8 million of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)
  • Realized a record 302 acceptances, a 46.6 percent year-over-year increase and 11.4 percent higher than Q2 2019.
  • Announced a collaboration with California BioEnergy to use dairy waste to create biogas that can be used in Bloom’s Energy Servers to generate renewable electricity that may be used to power electric vehicles throughout California.
  • Entered a new, potentially substantial market by announcing a collaboration with Samsung Heavy Industries, a part of Samsung Group, to design and develop ships powered by fuel cells running on natural gas.
  • Selected Jefferies Group, a global investment bank, to manage the refinancing of certain of the company’s debt maturities with a focus on completing this effort in the first half of 2020. A range of options is being considered with a focus on enhancing financial flexibility.

Commenting on third quarter results, KR Sridhar, CEO, Bloom Energy said:

“We generated record Q3 revenue, delivered meaningful adjusted EBITDA and achieved another quarter of record acceptances. Our primary drivers of success this quarter include installs with new customers in our core industry sectors and expanding relationships with existing customers – which reflects the quality, reliability and cost-effectiveness of our energy solutions. We continue to enable new features of our technology to open new markets and provide additional options for Bloom’s customers and the industry at large at a time when reliable, clean energy sources are in high demand. We are confident that the Bloom Energy Microgrid is the right product, right now to add to the infrastructure.”

Bloom Energy also released a technical note on how its fuel cells reduce emissions.

The company cited a study that showed its fuel cells replace dirtier alternatives such as Diesel engines used in back-up power sources at plants, hospitals and other facilities.

The fuel cells can also operate off landfill gas, hydrogen and even cow waste.

Critics have claimed the company’s technology does not reduce emissions as much as reported because the fuel cells largely use natural gas.

Bloom is promoting the use of its fuel cells in microgrids that can be used as power supplies at all times, including blackout periods.

Microgrids can be used by emergency services, hospitals and other entities that need a reliable backup supply. Their use may also be an answer to blackouts in California that occur in an effort to ensure that downed power lines do not cause wildfires.

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