Bloom Energy stock plummeted to a multiyear low on Friday following the release of the company’s financial results. The report did not sit well with Wall Street analysts.
In the fourth quarter, Bloom Energy reported earnings of 7 cents per share and revenue of $356.9 million. This fell short of analysts’ expectations, who were anticipating earnings of 9 cents per share and revenue of $470.8 million, according to FactSet.
Looking ahead, Bloom Energy expects to post full-year revenue between $1.4 billion and $1.6 billion, which is below the consensus estimate of $1.75 billion.
As a result of these disappointing numbers, shares of Bloom Energy tumbled 21% to $9.51. This marks the largest drop in percentage since March 2020 and the lowest closing price since June 2020. Over the past 12 months, the stock has declined by 61%.
J.P. Morgan analyst Mark Strouse downgraded shares from Overweight to Neutral and lowered his price target from $19 to $14. In a research note, he expressed the need for better visibility into revenue and operating income before resuming his optimism about the stock.
Oppenheimer analyst Colin Rusch, on the other hand, maintained his Perform rating on shares. However, he emphasized the importance of additional customer diversity, management stability, and evidence of increased demand in Korea before making any further judgments. Rusch did not provide a specific price target.
During the company’s conference call, Chief Executive K. R. Sridhar mentioned that Bloom Energy had to pause its deployments to Korea to adapt to new government policies and procurement rules.
Additionally, Bloom Energy announced that Chief Financial Officer Greg Cameron will be stepping down from his role. Strouse believes that this news will be viewed negatively by investors, considering Cameron’s focus on margin improvement throughout his four-year tenure.
Despite the challenges, Bloom Energy remains optimistic about its long-term growth prospects. However, stakeholders are waiting for clearer signs of progress before making any substantial moves.