Bloom Energy Corp (NYSE:BE) shares tanked in early trading on Friday, despite upbeat third-quarter results.
Here are some key analyst takeaways:
- BTIG analyst Gregory Lewis maintained a Buy rating, but cut the price target from $295 to $250.
- Bernstein analyst Sunaina Ocalan maintained a Market Perform rating and raised the price target from $282 to $306.
- KeyBanc Capital Markets analyst Sangita Jain reiterated a Sector Weight rating on the stock.
Check out other analyst stock ratings.
BTIG: Bloom Energy reported adjusted operating income of around $286 million, beating consensus by 27%, on the back of robust Product revenue, Lewis said in a note. The company raised its full-year guidance, with fourth-quarter earnings and operating income well above Street estimates, driven by strong pipeline growth and greater visibility into delivery schedules, he added.
The analyst noted, however, that the gross margin guidance remained unchanged at around 34%. “Management called out a near-term margin drag due to the ramp of new production capacity and expedited customer timelines,” he further wrote.
Bernstein: Bloom Energy delivered a “high-quality quarter,” beating expectations and raising guidance even against an uncertain macro backdrop, Ocalan said. The company’s revenue grew 138% year-on-year to $1.24 billion, while adjusted EBITDA came in 24% above consensus at $299 million, she added.
Bloom Energy’s product margins continued to improve despite the capacity ramp, the analyst noted. Management raised guidance for the third time this year, raising full-year revenue while keeping gross margin guidance at 34%, he said.
KeyBanc Capital Markets: Bloom Energy reported revenue of $1.24 billion, topping consensus of $1.07 billion, driven by a beat on the Product line, Jain said. The company grew revenue and improved leverage, taking gross margin to 34.5%, she added.
Management raised guidance again, projecting revenue of $4.4-$4.6 billion, up 12% at the midpoint and reflecting continued momentum, the analyst said. The gross margin outlook remained unchanged at 34%, with an implied operating margin of 22.1% versus a prior projection of 21.0%, she further noted.
BE Price Action: Bloom Energy shares had declined 10.92% to $194.00 at the time of publication on Friday.
Read More: Google’s $4 Billion Fuel-Cell Project Puts Bloom Energy’s AI Power Backlog to the Test
Image: Shutterstock
