Shares of Bloom Energy Corp (NYSE:BE) soared 16.83% in pre-market trading on Wednesday, after surpassing analyst expectations for the third quarter.

Q3 Revenue Jumps 57% With Strong EPS Beat

The energy company reported a third-quarter revenue of $519.05 million, which exceeded the $424.98 million estimated by analysts. The adjusted earnings per share (EPS) for the quarter were 15 cents, beating the projected 9 cents per share.

The total revenue for the quarter saw a 57.1% year-over-year increase. The product and service revenue accounted for $442.9 million of the quarterly revenue, marking a 55.7% year-over-year rise.

The company closed the quarter with roughly $595 million in cash and cash equivalents.

Strong Deals Pipeline

Earlier this month, the company’s shares saw a significant surge after it announced a $5 billion AI partnership with Brookfield Asset Management Inc. (NYSE:BAM).

In July, Bloom Energy’s stock jumped after the company announced a partnership with Oracle Corp (NYSE:ORCL). As part of the deal, Bloom would deploy its proprietary fuel cell technology to power select Oracle Cloud Infrastructure data centers across the U.S.

Bloom's Volatile Surge Meets Skepticism

Bloom Energy’s performance has been notably volatile.

The company’s stock experienced over 1000% surge over the past year, largely driven by high-profile wins and rapid deployment stories.

However, Bank of America analyst Dimple Gosai cautioned that Bloom's current valuation appears disconnected from its fundamentals. While its service margins and fuel cell reliability have improved, performance still falls short of historical targets -- with stack life struggling to consistently hit five years.

The bank also warned of mounting competition from major players like Caterpillar (NYSE:CAT), Cummins (NYSE:CMI), Rolls-Royce, and GE Vernova, whose offerings still surpass Bloom.

Benzinga's Edge Rankings place Bloom Energy in the strong 99th percentile for growth and the 2nd percentile for value, reflecting its weakness in this area. Check the detailed report here. 

Bloom Energy Price Action: On a year-to-date basis, shares have risen 384.72%. They were trading at $133.03 at last check. The stock rose 4.38% in after-hours trading on Tuesday, per Benzinga Pro.

READ NEXT:

• OpenAI Says $1 Trillion AI Buildout Could Lift GDP By 5%, Urges 100 GW Energy Push To Close ‘Electron Gap’ With China: Report

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.