Bloom Energy (BE) shares defied analyst expectations on Thursday, surging 5.88% in after-hours trading despite falling short of both revenue and earnings per share (EPS) estimates in their first-quarter report.
Financial Snapshot:
- Bloom Energy reported a quarterly loss of 17 cents per share, exceeding the analyst consensus of a loss of 11 cents.
- Revenue came in at $235.3 million, missing the expected $250.2 million and reflecting a 14.5% year-over-year decline.
- Product and service revenue also dipped by 10.5% compared to the same period last year.
Reasons for Optimism:
Despite the financial shortcomings, Bloom Energy leadership remained upbeat. CEO KR Sridhar pointed to "strong market interest, increasing momentum, and robust commercial activity" across various sectors. The company sees growth opportunities in data centers and the AI hardware supply chain, particularly in the US and Asia. Additionally, Bloom highlighted its "islanded-power mode" technology, offering faster deployment compared to traditional grid-connected solutions.
The Intel Catalyst:
The key driver behind the stock price increase seems to be the announcement of a major deal with Intel (INTC). This partnership will establish Silicon Valley's largest fuel cell-powered high-performance computing data center. The agreement entails expanding existing Bloom Energy fuel cell installations at Intel's Santa Clara facility with additional megawatts of capacity.
Looking Ahead:
Bloom Energy reaffirmed its full-year 2024 revenue guidance between $1.4 billion and $1.6 billion, slightly below the analyst estimate of $1.49 billion.
This after-hours price increase suggests that investors are prioritizing the long-term potential of Bloom Energy's technology and partnerships, outweighing the short-term financial shortcomings in Q1. Next week's market performance will provide further insights into investor sentiment towards Bloom Energy.