FuelCell Energy Inc (NASDAQ: FCEL) shares are trading lower in sympathy with Plug Power after the company reported worse-than-expected third-quarter EPS and sales results.
Plug Power reported quarterly losses of 19 cents per share which missed the analyst consensus estimate of a loss of 9 cents per share. Plug Power also reported quarterly sales of $143.92 million which missed the analyst consensus estimate of $143.93 million by less than 1%. This is a 35% increase over sales of $106.99 million the same period last year.
See Also: Plug Power Raises Revenue Guidance After Mixed Q3, Announces Frames Acquisition
Plug Power highlighted, as noted in the company’s second quarter investor letter, that gross margin has remained under pressure driven by multiple factors including elevated fuel, service, and product costs. Product and service costs stem in part from the COVID-19 related impact to the global supply chain.
Plug Power noted how COVID-19 related costs primarily stemmed from freight and material costs given the global impact on the transit industry, and higher labor costs given staffing and coverage issues. The company expects these trends will continue into the year end of 2021 but begin to abate as the global crisis subsides.
FuelCell Energy has a 52-week high of $29.44 and a 52-week low of $2.33.
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