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Fluence Energy Surprises Wall Street with Unexpected Profit


Fluence Energy, an energy-storage company, exceeded all expectations on Wall Street with an impressive fiscal fourth-quarter earnings report. The company reported a profit of 10 cents per share, taking analysts by surprise as the consensus was a loss of 7 cents per share. This marked Fluence’s first quarterly profit, indicating substantial growth compared to the previous year’s loss of 24 cents per share.

The revenue for the quarter was $673 million, surpassing analyst predictions of $510.9 million and demonstrating a significant increase from the previous year’s $442 million. Additionally, Fluence achieved adjusted earnings before interest, taxes, depreciation, and amortization of $20 million, exceeding estimates of a $4.7 million loss.

Looking towards the future, Chief Executive Julian Nebreda expressed confidence in Fluence’s market outlook, stating that the demand for sustainable energy solutions is growing rapidly. Nebreda believes that Fluence is well-positioned to meet this demand head-on.

For fiscal year 2024, Fluence forecasts revenue between $2.7 billion and $3.3 billion, which aligns closely with the consensus call of $2.76 billion among analysts surveyed by FactSet.

Fluence Shows Strong Revenue Growth, Maintains Market Position in Energy Storage

Guggenheim analyst Joseph Osha believes that Fluence (FLNC) is experiencing robust revenue growth and expects a 36% YoY outlook for the upcoming fiscal year. This indicates that the company is effectively holding its market position in the rapidly expanding energy storage market.

Osha rates Fluence as a Buy and has set a price target of $32. This target suggests a substantial 58% increase from the stock’s closing price on Tuesday.

Seaport Research Partners analyst Tom Curran also rates the stock as a Buy, but he holds an even more optimistic price target of $40. This target implies a significant 97% gain from Tuesday’s close. Curran refers to the stock as “battered,” but expresses bullishness towards its future prospects. It’s worth noting that Fluence shares have fallen 21% from their 52-week closing high of $31.13 on July 18.

According to Curran, Fluence has recently posted an exceptional performance. In the most recent report of CY3Q earnings season, the company achieved an across-the-board FY4Q23 beat, reached its first quarter of positive EBITDA, and entered FY2024 with official guidance, a storage market outlook/pipeline, and a strong balance sheet. Curran views this as a positive indication for the company’s sentiment.

Following these favorable assessments, shares of Fluence experienced a notable surge, increasing by 22% to reach $24.72. This marks the largest percentage gain since December 2022, according to Dow Jones Market Data. The stock has already gained an impressive 44% over the course of this year.

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