Bloom Energy (BE) shares opened in the green on Wednesday morning after the company reported blockbuster Q2 earnings that handily topped Street estimates. The clean energy firm generated a record $1.065 billion in revenue, up a remarkable 165.5% on a year-over-year basis, shattering the consensus set at $815.6 million and setting a new record for the company.
Adjusted earnings per share (EPS) also came in at $0.78, nearly double the estimated $0.40.
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Despite the post-earnings surge, however, Bloom Energy stock remains down roughly 50% versus its year-to-date high in late June.
www.barchart.comRaised Guidance Drives Bloom Energy Stock Higher
Investors are also cheering BE shares because of the raised full-year guidance.
Citing accelerating demand from artificial intelligence (AI) data centers and hyperscale operators, management said revenue is now expected to fall between $3.9 billion and $4.2 billion — up from its previous guidance of $3.8 billion at the high end.
The midpoint of this range represents a staggering 100% growth on a year-over-year basis.
Note that in Q2, Bloom Energy’s product revenue more than tripled to $935 million as major cloud providers turned to its solid-oxide fuel cells to bypass electrical grid bottlenecks.
Supported by an expanded $25 billion financing partnership with Brookfield, the firm’s ability to deliver onsite power at “AI speed” is accelerating backlog conversion and driving full-year targets higher.
Options Pricing Signals Further Upside in BE Shares
It's also worth mentioning that the recent tech rout has contracted Bloom Energy shares' sales multiple to a much more palatable 26x.
Together, financial strength and a toned-down valuation are keeping the derivatives market positive on the clean energy stock.
According to Barchart, the put-to-call ratio on options contracts expiring mid-October sits at 0.31x currently, with the upper price indicating potential for a 40% rally within the next three months.
All in all, BE’s quarterly print suggests the recent selloff went too far.
How Wall Street Recommends Playing Bloom Energy
Investors could also take heart in the fact that Wall Street is even more bullish than options traders on BE stock.
The consensus rating on Bloom Energy remains at “Moderate Buy,” with the mean price objective of about $280 indicating potential for a 65% rally from here.
www.barchart.com On the date of publication, Wajeeh Khan 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.
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