Shares of Fluence Energy (NASDAQ:FLNC) skyrocketed more than 26% on Tuesday after the company reported strong growth in Q4 revenues and offered upbeat guidance for 2023. The company provides energy storage solutions along with cloud-based software for renewables and storage.
The quarterly revenues of $442 million beat the Street’s expectations of $359.8 million and increased 134.8% year-over-year. The company’s project execution remained strong during the quarter as several projects achieved “significant milestones.”
Furthermore, Fluence reported a loss of $0.24 per share, narrower than the analysts’ estimates of a loss of $0.29 per share. The figure was also considerably below the year-ago quarter’s loss of $0.74 per share.
Going ahead, the company is optimistic about its performance in Fiscal 2023. Revenue is expected to fall in the range of $1.4 billion to $1.7 billion. Also, Fluence anticipates adjusted gross profit to be between $60 million – $100 million.
Chief Financial Officer Manavendra Sial said, “As we turn the page to 2023, we are confident the impact of the headwinds experienced during 2022 is largely behind us as a result of the improvements made to our supply strategy and overall project execution.”
The company separately announced plans to begin production of battery packs in the U.S. in early 2024. With this move, the company expects to have “greater control over the global supply chain and increase standardization across products.”
Is Fluence Stock a Good Buy?
On TipRanks, Fluence has a Hold consensus rating based on two Buys, one Hold, and one Sell. The average stock price forecast of $20 implies 8% downside potential from current levels. At the same time, the stock has declined 37.7% year-to-date.
