Shares of fuel cell pioneer Bloom Energy (NYSE:BE) are sliding Thursday, down 3.6% as of 12:45 p.m. EST after the “energy in a box” company reported a much bigger loss than anticipated, despite beating expectations for sales.
Heading into earnings last night, analysts had predicted Bloom would break even on sales of $235.3 million in its fiscal fourth quarter of 2020. Instead, Bloom had to fess up that it lost $0.08 per share, despite booking sales of $249.4 million.
Bloom’s sales in the fourth quarter of 2020 grew 17% in comparison to last year’s Q4, capping off what had up until now been an unimpressive year in which total sales grew only 1% ($794.2 million by year-end).
As already mentioned, earnings-wise, the company lost $0.08 per share in Q4 — and that was only the pro forma number. When calculated according to generally accepted accounting principles (GAAP), Bloom’s quarterly losses turn out to actually have been twice as big: $0.16 per share. Still, this was an improvement over last year, when Bloom lost $0.58 in Q4.
For the full year, Bloom lost $1.14 per share according to GAAP, cutting its 2019 losses by more than half.
Now what’s next for Bloom? Management predicted that 2021 will see Bloom rake in between $950 million and $1 billion in total sales, on par with analyst expectations. The company didn’t give a lot of detail on its hopes for profitability, but said its operating profit margin — its pro forma operating profit margin — might be 3%, and that cash from operations will be “approaching positive.”
I don’t know about you, but the way I read that is this: Bloom will lose money again in 2021, and it will almost certainly continue burning cash. And I’ve a hunch that is why Bloom stock is down today.
This article represents the opinion of the writer(s), who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
View more information: https://www.fool.com/investing/2021/02/11/why-bloom-energy-stock-just-dropped/