On Tuesday, Susquehanna maintained its positive stance on shares of Bloom Energy Corp . (NYSE: NYSE:BE), increasing the stock's price target from $13.00 to $16.00. This adjustment follows the company's third-quarter results, which were announced last week.
Bloom Energy reported securing three new orders during the quarter, notably including what is set to become the world's largest single-site fuel cell installation, an 80 megawatt project in South Korea.
Despite not having signed any significant agreements with data center customers yet, Bloom Energy is actively pursuing large-scale orders. The company upheld its full-year revenue and gross margin (GM) forecasts, suggesting a substantial increase in deliveries and margins for the fourth quarter. Management expressed confidence in achieving these targets.
The third-quarter financials revealed a revenue of $330 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $21 million. These figures fell short of Susquehanna Financial Group's (SFG) expectations, which were $364 million in revenue and $33 million in EBITDA. The forecasted increase in the fourth quarter is anticipated to compensate for the shortfall witnessed in the third quarter.
Bloom Energy's announcement of the new orders, especially the groundbreaking project in South Korea, signifies its ongoing efforts to expand its global footprint in the fuel cell industry. The company's steady guidance indicates a strategic focus on ramping up its operations to meet its year-end financial goals.
The price target adjustment by Susquehanna reflects confidence in Bloom Energy's market position and its potential for growth, despite the recent revenue and EBITDA misses. Investors and market watchers will be looking forward to the fourth quarter results to see if Bloom Energy can deliver on its promises and capitalize on its recent business developments.
In other recent news, Bloom Energy Corporation reported mixed results for its third quarter of 2024. The company's Q3 revenue saw a decline of 17.5% year-over-year to $330.4 million, primarily due to a decrease in install revenue, but product revenue did increase by $7.5 million. The non-GAAP gross margin also fell to 25.2% from 31.6% in the previous year.
Despite these results, Bloom Energy projects a full-year revenue between $1.4 to $1.6 billion and a non-GAAP operating income of $75 to $100 million. The company ended the quarter with a strong cash position of $549 million and anticipates positive cash flow for the latter half of 2024.
As part of recent developments, Bloom Energy secured an 80-megawatt project in South Korea and is in discussions for potential partnerships with pipeline infrastructure operators. Furthermore, they are expanding their manufacturing capacity in Fremont in anticipation of increased demand.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Bloom Energy's financial position and market performance. The company's market capitalization stands at $3.11 billion, reflecting its significant presence in the fuel cell industry. Despite a challenging revenue landscape, with a 12.56% decline in the last twelve months, Bloom Energy has shown resilience in its stock performance. The company has delivered strong returns over various timeframes, with a noteworthy 26.82% increase in the past month and a 29.22% gain over the last year.
InvestingPro Tips highlight that 8 analysts have revised their earnings upwards for the upcoming period, aligning with Susquehanna's positive outlook. This optimism is further supported by the expectation that Bloom Energy will be profitable this year, despite not being profitable over the last twelve months. These insights suggest that analysts anticipate a turnaround in the company's financial performance, possibly driven by the new orders mentioned in the article, including the significant South Korean project.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Bloom Energy, providing a deeper understanding of the company's potential and risks in the evolving energy sector.
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