Earlier this year, fuel cell company FuelCell Energy (NASDAQ:FCEL) had seen its stock go on a strong rally, and eventually, it hit a peak of $29 a share in February.
However, that did not last long and after the company announced its quarterly earnings on March 16, the stock tanked considerably. Although some investors did return to the stock, it could not resurrect the stock since the quarterly results exposed some fundamental weaknesses in FuelCell.
In the first quarter, the company reported gross losses to the tune of $3.6 million. It was a significant reversal considering the fact that in the year ago period, FuelCell had managed to generate $3.3 million of gross profits.
While the performance came as a shock for many investors, it is also necessary to note that the company had a backlog of as much as $1.27 billion at the time. That is something that is a bit of a silver lining for FuelCell at this point.