Why Fermi Stock Is Down 10% Today
Fermi celebrated new customers and financing in Q2. Investors focused on the missing revenue instead.
Overview
Fermi (NASDAQ: FRMI) reported Q2 results this morning, and investors didn't like what they saw. The Texan real estate investor and private energy grid operator celebrated a 15-year anchor customer, delivery of key infrastructure components, and nearly $417 million of debt-based financing in the second quarter. But Fermi fell short on one crucial metric when it reported zero revenues again.
The company describes itself as a pre-revenue business, and the Q2 income statement didn't even have a line for sales. That's not a disaster in the context of three earlier revenue-less reports, but Wall Street expected better. Consensus top-line estimates range from $72 million to $148 million, depending on whose analyst polls you prefer.
Details
Management expects to bring online the first 200 megawatts at its Project Matador site over the next six months, with revenue to follow as computing clients complete and populate their data centers. For now, Fermi runs massive construction projects with no proven revenue to show for it.
Source
Originally published at www.fool.com.
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