Fluence Energy: Negative Earnings This Year As Shares Probe Support

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The Industrials assemblage was very beardown past twelvemonth amid rising rates and hopes for a soft landing successful nan economy. This year, successful nan look of rising yields, maturation names person done comparatively well, and worth spots person lagged. I spot it arsenic more of a region successful a broader inclination that supports nan worth case. Hence, 2023's underperformance pinch XLI whitethorn beryllium short-lived arsenic investors travel to grips pinch higher discount rates applied to DCF models connected tech names.

One basking banal during nan backmost half of 2022 has stalled, retreating by astir a 3rd to cardinal support connected nan chart. Let's get a refreshed look astatine Fluence Energy (NASDAQ:FLNC).

Industrials Retreat, But A Modest Recent Relative Uptick

Stockcharts.com

According to Bank of America Global Research, Fluence Energy, Inc was launched successful January 2018 by Siemens and AES arsenic a associated task dedicated to innovating modern electrical infrastructure. Fluence delivers power retention products, services, and integer exertion packages, arsenic good arsenic artificial intelligence-enabled IQ platforms to optimize renewable and third-party retention assets.

The Virginia-based $3.4 cardinal marketplace headdress Electrical Equipment manufacture institution wrong nan Industrials assemblage has antagonistic trailing 12-month GAAP net and does not salary a dividend, according to The Wall Street Journal. The banal has an elevated short liking astatine 12.7% per Seeking Alpha.

Earlier this month, JP Morgan downgraded nan banal pursuing its February 9 net that were mixed. Fluence reported an net hit (a nonaccomplishment little than expected) while revenues, up 78% YoY, were beneath expectations. The upside was that guidance issued upward guidance, but nan banal sunk large successful nan days aft nan report.

On valuation, analysts astatine BofA precocious took down estimates for FLNC net successful 2024. EPS is now seen arsenic remaining further successful nan reddish done adjacent twelvemonth earlier yet turning affirmative by 2025. The Bloomberg statement outlook is somewhat much sanguine, forecasting operating profits adjacent year.

With nary output and antagonistic free rate flow, location mightiness not beryllium overmuch to for illustration connected nan aboveground here. But I announcement that shares waste and acquisition astatine a 1.33 guardant price-to-sales ratio pursuing updated top-line figures and nan caller banal value decline. That's astir successful statement pinch nan assemblage median. Overall, nan valuation continues to look conscionable adjacent to me.

Fluence: Earnings, Valuation, Free Cash Flow Forecasts

BofA Global Research

Looking ahead, firm arena information provided by Wall Street Horizon shows an upcoming shareholder gathering connected March 20. There's a chance volatility could emergence astir that date, but nan almanac is ray aft that until nan unconfirmed Q2 2023 net date.

Corporate Event Risk Calendar

Wall Street Horizon

The Technical Take

There person been immoderate absorbing developments connected nan charts pinch FLNC lately. Notice successful nan chart beneath that shares person retreated to an uptrend support line, but there's besides been bearish divergence arsenic shares roseate to caller highs successful January and early February. Back successful December, I was bullish connected nan banal owed to immoderate favorable method moves, but nan momentum did not materialize (though shares sewage very adjacent to my $28 target).

Now, I spot risks that shares could break this support line. What's troubling is that nan adjacent area of buyers whitethorn not deed until Fluence dips to adjacent $12. I'm a clasp here, and short-term traders mightiness want to see a extremity nether nan rising 200-day moving average.

FLNC: Bearish Divergence, Stock At Trendline Support

Stockcharts.com

The Bottom Line

I americium downgrading FLNC to a clasp present aft nan breakout did not clasp up well. Still, nan banal is adjacent cardinal support, and investors should watch nan levels outlined successful nan method view. Fundamentally, Fluence appears adjacent close value.

Freelance Financial Writer astatine SoFi & Ally | Investments | Markets | Personal Finance | RetirementI create written contented utilized successful various formats including blogs, emails, achromatic papers, and societal media for financial advisors and finance firms successful a cost-efficient way. My passion is putting a communicative to financial data. Working pinch teams that see elder editors, finance strategists, trading managers, information analysts, and executives, I lend ideas to thief make contented relevant, accessible, and measurable. Having expertise successful thematic investing, marketplace events, customer education, and compelling finance outlooks, I subordinate to mundane investors successful a pithy way. I bask analyzing banal marketplace sectors, ETFs, economical data, and wide marketplace conditions, past producing snackable contented for various audiences. Macro drivers of plus classes specified arsenic stocks, bonds, commodities, currencies, and crypto excite me. I genuinely bask communicating finance pinch an acquisition and imaginative style. I besides judge successful producing evidence-based narratives utilizing empirical information to thrust location points. Charts are 1 of nan galore devices I leverage to show a communicative successful a elemental but engaging way. I attraction connected SEO and circumstantial style guides erstwhile appropriate. My CFA and CMT backgrounds show prowess successful finance guidance and my master acquisition includes extended nationalist speaking and communication. Moreover, my extended assemblage school and master trading acquisition supply useful skills. Past roles besides see dense usage of Excel modeling and floor plan creation arsenic good arsenic PowerPoint.I americium a contributor to The Dividend Freedom Tribe.