Bloom Surges on Higher Guidance as Earnings Double Estimates

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Or sign-in if you have an account.(Bloomberg) — Bloom Energy Corp. jumped after the fuel-cell maker posted earnings that were more than double expectations and raised full-year guidance for the second consecutive quarter, a sign of rampant demand from data centers. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountBloom reported second-quarter profit of 62 cents per share, according to a statement Tuesday, blowing past the 28-cent average of estimates compiled by Bloomberg. The shares gained as much as 14% in after-hours trading in New York.The company manufactures fuel cells that produce electricity from natural gas, and its systems are in high demand to power data centers. Although conventional gas turbines have a years-long waiting list, Bloom says it can deliver much faster. Oracle Corp. in April said it would buy 2.8 gigawatts of capacity from Bloom after the company made some deliveries in as few as 55 days. “Demand is compounding,” Chief Executive Officer KR Sridhar said in a conference call with analysts. “New customers are arriving at a faster pace than ever.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againBooming fuel-cell demand has prompted the company to repeatedly boost sale forecasts. The company said Tuesday that sales this year will range from $3.9 billion to $4.2 billion, up from April guidance of $3.4 billion to $3.8 billion. In February, it projected annual sales of $3.1 billion to $3.3 billion. That demand has prompted questions about Bloom’s ability to boost production, and whether it can do so fast enough to deliver fuel cells to all the data centers that are clamoring for electricity now. “Bloom Energy’s AI-power earnings upside rests on converting demand into cash,” Rob Barnett, a Bloomberg Intelligence senior analyst, wrote in a research note. The company has said it’s doubling production capacity at its Fremont, California, facility this year to about 2 gigawatts annually, and the site could eventually be expanded to make as much as 5 gigawatts a year. Sridhar said on the call Tuesday that Bloom uses a sophisticated algorithm to plan manufacturing, but declined to provide specific details on output. “We can predict what our capacity needs are going to be,” he said on the call. “Capacity is not going to be our constraint.”(Updates with comment on capacity from CEO in last paragraph.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.