Sunrun Inc.
RUN
is slated to report first-quarter 2022 results on May 4 after the closing bell.
In the last reported quarter, the company witnessed an earnings surprise of 0.00%. However, in the trailing four quarters, Sunrun delivered a negative earnings surprise of 186.67%, on average.
Factors to Note
The robust customer demand and strong growth in volume and new installations are anticipated to have favorably impacted RUN’s top line in the soon-to-be-reported quarter.
Also, the company’s partnership with Ford is expected to have added impetus tothe company’s performancein the to-be-reported quarter. Additionally, the integration of Vivint Solar is also expected to have favorably contributed to its first-quarter revenues.
Furthermore, a ramp-up in battery installation is anticipated to have boosted the revenues of Sunrun in the first quarter.
Considering all these factors, we remain optimistic about the company’s top line in the first quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $382.9 million, suggesting growth of 14.4% from the year-ago reported figure.
From the cost perspective, sales-related and initial project development costs, coupled with Omicron-related effects on margins and an unfavorable product mix, may have dampened Sunrun’s margins in the soon-to-be-reported quarter. This, in turn, may have adversely impacted its first-quarter earnings. However, modest price increases implemented by the company may have offset the adverse cost impact on its first-quarter earnings.
Additionally, solid cost synergies from the Vivint Solar transaction are expected to have added impetus to its bottom line in the first quarter.
The Zacks Consensus Estimate for RUN’s
first-quarter earnings
is pegged at a loss of 14 cents per share,suggesting a deteriorationfrom the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Sunrun this time. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here as you will see.
The company has an Earnings ESP of -235.7% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
A Stock to Consider
Here is one
Solar
player you may want to consider as it has the right combination of elements to post an earnings beat this season:
SunPower
SPWR
currently has an Earnings ESP of +26.31% and a Zacks Rank #3. The Zacks Consensus Estimate for its first-quarter earnings, pegged at 3 cents per share, implies a year-over-year decline of 40% from the prior-year reported figure. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Zacks Consensus Estimate for SunPower’s first-quarter sales suggests year-over-year growth of 9.2% from the prior-year reported figure. SPWR has a four-quarter earnings surprise of 8.33%.
Upcoming Releases
Here are two solar players who are yet to release their first-quarter numbers:
ReneSola
SOL
: The Zacks Consensus Estimate for ReneSola’s first-quarter earnings is pegged at a loss of 6 cents per share.
The Zacks Consensus Estimate for its first-quarter sales, pegged at $3.9 million, suggests a decline of 82.7% from the prior-year figure. SOL has a four-quarter earnings surprise of 94.17%, on average.
FTC Solar, Inc
FTCI
: The Zacks Consensus Estimate for FTC Solar’s first-quarter sales is pegged at $57 million.
The Zacks Consensus Estimate for FTCI’s first-quarter earnings is pegged at a loss of $12 cents per share. FTC Solar has a four-quarter negative earnings surprise of 32.77%, on average.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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