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Bloom Energy to Release Q4 Earnings: How Should You Play the Stock?

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Bloom Energy Corporation (BE - Free Report) is expected to report an improvement in its top and bottom lines when it reports fourth-quarter 2024 results on Feb. 27, after market close.

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for BE’s fourth-quarter revenues is pegged at $551.6 million, indicating a increase of 43.35% from the year-ago reported figure.

The Zacks Consensus Estimate for BE’s fourth-quarter earnings is pegged at 32 cents per share, indicating growth of 357.1% from the year-ago reported figure.

Zacks Investment Research
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What the Zacks Model Unveils

Our model does not conclusively predict an earnings beat for Bloom Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you can see below.

Bloom Energy Corporation Price and EPS Surprise

Bloom Energy Corporation Price and EPS Surprise

Bloom Energy Corporation price-eps-surprise | Bloom Energy Corporation Quote

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Bloom Energy has an Earnings ESP of -11.95%.

Zacks Rank: Bloom Energy currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Some other stocks in the same sector that also have the combination of factors indicating an earnings beat this season are Sunnova Energy International Inc. (NOVA - Free Report) , Granite Ridge Resources, Inc. (GRNT - Free Report) and Berry Corporation (BRY - Free Report) . NOVA, GRNT and BRY have an Earnings ESP of +3.06%, +11.11% and +8.33%, respectively, and carry a Zacks Rank #2 each.

Factors Likely to Have Shaped BE’s Q4 Earnings

Bloom Energy’s fourth-quarter earnings are expected to have gained from its expanding domestic and international commercial capability. The company’s fuel cell deployments have very high power density, 100 megawatts (“MW”) per acre and allow it to meet the rapid electricity demand growth coming from the data centers.

South Korea is a very important market for Bloom Energy and its partner, SK ecoplant Co., Ltd. Is expected to purchase 500 MW of Bloom solid oxide fuel cells between Jan. 1, 2024, and Dec. 31, 2027, which is likely to have benefited fourth-quarter earnings of the company.
 
During the fourth quarter, the company announced its partnership with FPM Development for 20 MW of Bloom’s SOFCs across two strategic locations in Los Angeles. The partnership demonstrates Bloom’s capability to rapidly add affordable and resilient generational capacity to American utilities. Bloom and FPM are working together to deliver hardware by the end of 2024. This project is likely to have boosted fourth-quarter earnings.

In the fourth quarter, Bloom Energy also signed a large project in South Korea, the 80 MW project begin commercial operations in 2025.

BE’s Price Performance

BE’s shares have gained 135.7% in the past year compared with its industry’s rally of 55.1%.

Zacks Investment Research
Image Source: Zacks Investment Research

Investment Thesis

Bloom Energy is a trusted partner in delivering low-carbon energy and is a leader in solid oxide fuel cell technology, having demonstrated 60% electrical efficiency using hydrogen and 90% combined heat and power efficiency. The company is experiencing high levels of commercial interest in its products and solutions.

Electricity demand is expected to increase as energy-intensive industries like data centers and advanced manufacturing continue to place increased electricity demand on the grid. Bloom Energy’s carbon-free hydrogen fuel cell for electricity production enables 24/7 clean power in conjunction with other renewable electricity sources, which is a vital tool to reduce both carbon emissions and strain on the congested grid.

Bloom Energy’s products are gradually getting the recognition they deserve, as 48% of its revenues are now generated from the international market.

Wrapping Up

Bloom Energy is set to benefit from rising demand for clean energy from domestic and international markets. The company is a global leader in stationary fuel cell and power generation, with 1.3 GW deployed worldwide.

It will be wise to hold your position in this Zacks Rank #3 stock. Investors can wait and look for a better entry point post the fourth-quarter earnings.

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