Why Bloom Energy stock plummeted today

Bloom Energy (BE -19.26%) Stocks are ending the week on a very sour note. The hydrogen energy company reported fourth-quarter results last night, and the market sent the stock to a four-year low today.

As of 1:30 PM ET, Bloom stock was down 19.2% on the day. This is in part because the company reported a nearly 23% decline in revenue compared to the fourth quarter of last year. But there was another reason why stock prices hit multi-year lows.

Loss of Chief Financial Officer (CFO)

Bloom announced in conjunction with its financial results that Greg Cameron, the company’s president and CFO, will be leaving the company after four years in the role. The transition appears not to be planned, as Bloom said he has now hired an executive search service to find a replacement CFO candidate.

The company added that this departure was not related to differences of opinion or issues related to company operations or policies. But Wall Street doesn’t like change when it’s unexpected, especially when it comes to top financial executives.

What’s next for Bloom?

Last night, Bloom reported that sales were down nearly 23% year-on-year. The results surprised analysts, who had expected a slight increase in sales. The company reported fourth-quarter net income of $4.5 million. A profit of $0.02 per share represents a strong rebound from a loss of $0.23 per share a year ago.

However, investors and analysts are more focused on the decline in sales. This largely stems from a hit in its Korean business, where the company announced several collaborations last year to sell hydrogen fuel cells.

Bloom CEO KR Sridhar told investors the company had to “pause” sales to South Korea to “adapt to new policies and procurement rules” launched by the government last year. This hurt Bloom’s Korean sales, which Sridhar said continued to decline through 2024.

He said sales are back on track, but the disappointing news is causing investors to give up on the renewable energy company, at least for now.