Bloom Energy Corporation (BE) is a renewable energy company focused on reducing carbon emissions. The company provides solid oxide fuel cell platforms called Bloom Energy Servers, which convert fuel - such as natural gas (NGQ24), hydrogen, and biogas - into electricity with the help of an electrochemical process, without relying on combustion. Likewise, Bloom's solid oxide electrolyzer is built on the same platform, and converts water into hydrogen for electricity via electrolysis.
Their client base includes data centers, hospitals and biotech companies, manufacturers including Honda (HMC), retailers like Walmart (WMT) and more. Incorporated in 2001, Bloom was formerly known as Ion America Corp., but changed its name to Bloom Energy in 2006. Located in San Jose, the company is valued at $3.28 billion by market cap.
Like many clean energy stocks, Bloom Energy has lagged the broader market over the past year, but is starting to regain momentum amid rising expectations for Fed rate cuts. BE stock is up 36% over the past three months, narrowing its YTD loss to just about 2%.
Bloom Energy Inks a New AI Partnership
Bloom Energy’s stock is also on the rise amid news of an artificial intelligence (AI) partnership with CoreWeave to help power a data center in Illinois owned by privately held Chirisa Technology Parks. The data center will accommodate high-density deployments with advanced cooling systems, enabling CoreWeave to produce efficient cloud solutions for AI.
“This validation from CoreWeave, a leader in AI, is a testament to our leading-edge technology and its importance to AI,” said Chief Commercial Officer Aman Joshi in a statement.
Bloom's fuel cells will be commissioned for the project in Q3 of 2025.
Bloom Energy Misses on Q1 Earnings
Bloom Energy reported its first-quarter earnings on May 9, with revenue of $235.3 million falling 14.5% YoY, and missing analysts' estimate of $254.1 million. The company swallowed a loss during the quarter of $57.5 million, or $0.17 per share on an adjusted basis, which was wider than the consensus forecast for a loss of $0.10 per share.
The renewable energy company reported a gross margin decline from 19.7% in the year-ago period to 16.2% in Q1 of 2024.
For the full year, management backed its full-year guidance for revenue in the range of $1.4-$1.6 billion, with a non-GAAP gross margin of ~28% and non-GAAP operating income between $75 million and $100 million.
Wall Street expects BE to narrow its full-year GAAP loss by 49% in fiscal 2024, and break even on a full-year basis in 2025.
How Are Analysts Feeling About BE?
Analysts are reasonably bullish on Bloom Energy stock, with a consensus “Moderate Buy” rating. The energy stock is being tracked by 21 analysts, with 7 “Strong Buy” ratings, 3 “Moderate Buy” ratings, 10 “Hold” ratings, and 1 “Moderate Sell” rating.
The mean price target of $15.79 suggests an upside potential of 8.4% from current levels, while the Street-high prediction of $25 indicates a premium of 71%.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
