Bloom Energy Sees Elevated Call Volume and Implied Volatility Ahead of Earnings

Bloom Energy's call volume is above normal, with 19,834 calls trading, 1.1x expected, and implied vol increasing by 1 point to 77.81%. The most active options are Aug-25 44 calls and Nov-25 45 calls, with a total volume of near 8,800 contracts. The Put/Call Ratio is 0.11, and earnings are expected on November 6th.

Bloom Energy's (BE) second quarter results were marked by robust revenue growth and significant improvements in profitability, yet the market reacted negatively. The company reported a 19.5% year-on-year growth in revenue, reaching $401.2 million, and beat analyst estimates by 6.5%. Adjusted EPS was $0.10, a substantial beat of analyst expectations of $0.02, and adjusted EBITDA was $41.24 million, a 10.3% margin and a 48% beat over estimates [1].

Management attributed the quarter's momentum to heightened demand from data center operators, particularly those supporting AI workloads, and to new partnerships with major utilities and hyperscalers. CEO K.R. Sridhar highlighted that "time to power" and reliability were decisive factors in recent customer wins, citing rapid installations for clients such as Oracle and Quanta Computer. The company’s focus on operational discipline, product cost reduction, and the expansion of its service business contributed to higher margins and a consistent trend of profitability over the past six quarters [1].

Despite the positive results, the market reacted negatively, with the stock trading at $41.87, down from $41.25 just before the earnings. The company's stock price has since rebounded to $43.42, up 5.27% from its previous close, and hit an intraday high of $46.50, matching its 52-week peak [2].

Analyst questions during the earnings call provided additional insights. David Keith Arcaro (Morgan Stanley) asked about the potential acceleration of hyperscaler deals following the Oracle partnership. CEO Sridhar highlighted that Oracle is the first direct hyperscaler customer and that the project’s success could serve as a model for future engagements. Michael (JPMorgan, for Mark Strouse) inquired about the timeline and funding for the planned capacity expansion, to which Sridhar responded that Bloom can add factory capacity "in months" and that the estimated $100 million investment is already funded [1].

Manav Gupta (UBS) questioned the drivers behind margin improvement and the potential for double-digit operating margins in the future. Sridhar attributed margin gains to fiscal discipline in cost management and level-loaded manufacturing, noting that quarterly variability could occur due to product mix and volume. Christopher J. Dendrinos (RBC Capital Markets) asked about the adoption of combined heat and power (CHP) solutions, to which Sridhar said customer interest is high and that CHP can be added as a modular upgrade, enhancing the value proposition for both data center and industrial clients [1].

Dushyant Ajit Ailani (Jefferies) inquired about international expansion, specifically in markets like Taiwan and Europe. Sridhar stated that while the U.S. remains the primary market, Bloom is making progress in establishing a presence in new international markets, with ongoing efforts in Taiwan, Germany, Italy, and the U.K. [1].

The upcoming quarters will be crucial for Bloom Energy, with the stock market monitoring the pace and scale of new data center deployments, execution on the planned expansion to 2 gigawatts of manufacturing capacity, and adoption rates for new product features such as combined heat and power. Progress on international market entries and the ability to maintain margin improvements will also be key signposts for Bloom’s ongoing performance [1].

With the company's earnings expected on November 6th, investors should closely monitor the call volume and implied volatility. The call volume is above normal, with 19,834 calls trading, 1.1x expected, and implied vol increasing by 1 point to 77.81%. The most active options are Aug-25 44 calls and Nov-25 45 calls, with a total volume of near 8,800 contracts [2].

References:
[1] https://finance.yahoo.com/news/5-most-interesting-analyst-questions-031545254.html
[2] https://www.ainvest.com/news/bloom-energy-surges-7-57-earnings-beat-analyst-upgrades-fueling-green-energy-giant-rally-2508/