FuelCell Advances on Higher Forecast as Sales Grow: Boston MoverJustin Doom
FuelCell Energy Inc., a U.S. manufacturer of fuel-cell power plants, surged the most in three months after saying sales in its second fiscal quarter will exceed analysts’ estimates as demand grows.
FuelCell rose 6.6 percent to 90 cents at the close in New York, the most since January 3.
Revenue for the quarter ending April 30 will be $38 million to $40 million, the Danbury, Connecticut-based company said in a statement today. That compares with the $36.4 million average of three analysts’ estimates compiled by Bloomberg.
The company said demand for its power plants is increasing in the U.S. and abroad, including a 14.9-megawatt sale announced in December to Dominion Resources Inc. Posco Energy Co., South Korea’s largest steelmaker and FuelCell’s largest shareholder with a 16 percent stake, placed its biggest order to date in November, for 121.8 megawatts of systems.
FuelCell’s systems convert natural gas into electricity through a chemical process. It expects production to reach an annual run-rate of 70 megawatts by May 1, according to the statement.