Earnings Previews: FuelCell Energy,, KE Holdings

In early trading on Tuesday, the Dow Jones industrial average was flat, the S&P 500 was up 0.01% and the Nasdaq was up 0.2%.

After U.S. markets closed on Monday, reported better-than-expected earnings per share (EPS) and revenue. China’s largest online travel site said business has picked in China since the beginning of the year, and it expects the pace to continue quickening. Shares traded down about 3% early Tuesday.

Before markets opened Tuesday morning, Dick’s Sporting Goods reported beating consensus estimates on both the top and bottom lines. The company guided fiscal 2024 EPS in a range of $12.90 to $13.80, well above the consensus estimate of $12.03. Dick’s also raised its dividend to $4.00 (annualized), a 105% jump. Shares traded up more than 8% in the morning.

Sea Limited also beat consensus estimates. The Asian gaming and e-commerce giant dramatically cut costs and made some accounting adjustments, as well as cutting salaries and slashing sales and marketing expenses. The stock traded up 16.7%.

After U.S. markets close Tuesday and before they open again on Wednesday, Campbell Soup, Crowdstrike and Stitch Fix will release earnings reports

Here is a look at what to expect when the following three companies report earnings late Wednesday or early Thursday.

FuelCell Energy

Hydrogen fuel cell maker FuelCell Energy Inc. (NASDAQ: FCEL) has seen its share price decline by about 37% over the past 12 months, including a jump of nearly 23% since the beginning of 2023. The entire fuel cell industry remains a case of potentiality rather than performance. There are a number of companies, large and small, trying to elbow their way into a predominant position, including Shell, now building a green hydrogen plant in the Netherlands that will be Europe’s largest when it opens in 2025. Air Products & Chemicals is another deep-pocketed rival.

Of 10 analysts covering the stock, none has a Buy or Strong Buy rating, and two have a Sell or Strong Sell rating. Shares currently trade at around $3.40, above the median price target of $3.20. At the high price target of $5.00, the implied gain is about 67%.

Consensus estimates call for fiscal first-quarter revenue of $25.4 million, which would be down 35.6% sequentially and down 20.6% year over year. The company is expected to post a per-share loss of $0.07, better than the prior quarter’s loss per share of $0.11, and two pennies worse than the year-ago loss. For the full 2023 fiscal year that ended in October, analysts expect a loss per share of $0.30, slightly better than last year’s loss of $0.32 per share, on sales of $128.3 million, down 1.7%.

FuelCell Energy is not expected to post a profit in 2023, 2024 or 2025. The stock trades at a 2023 enterprise value to sales multiple of 8.6. The estimated multiple for 2024 is 5.5, and for 2024 it is 3.8.  The stock’s 52-week trading range is $2.47 to $7.33. The company does not pay a dividend, and the total shareholder return for the past year was negative 37.32%.

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