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Sunrun (RUN) to Report Q3 Earnings: What's in the Cards?
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Sunrun Inc. (RUN - Free Report) is set to report third-quarter 2020 results on Nov 5, after market close.
In the last reported quarter, the company witnessed a negative earnings surprise of 200.00%. In the trailing four quarters, Sunrun delivered negative earnings surprise of 238.19%, on average.
Let's take a closer look at the factors influencing the company’s upcoming quarterly results.
Factors Under Consideration
Sunrun has been experiencing lower order volumes in the recent past due to restricted access to certain sales channels, courtesy of the COVID-19 pandemic impacts. Resultantly, lower installation volumes have been hurting its top-line performance.
Although order volumes have started to improve since late April 2020, with the economy slowly starting to recover, it seems highly unlikely that order volumes reached the pre-COVID levels during the third quarter. Thus, we remain skeptical about the company’s ability to post revenue growth on a year-over-year basis in the soon-to-be-reported quarter.
However, grid service revenues are expected to have been solid on account of notable awards that the company received in the past couple of quarters.
Notably, the Zacks Consensus Estimate for third-quarter sales is pegged at $206.3 million, which indicates a 4.3% drop from the year-ago quarter’s reported figure.
In July, Sunrun announced that it will acquire Vivint Solar for an enterprise value of $3.2 billion. The deal was closed in September. We expect costs incurred to fund the transaction to have had an adverse impact on the company’s third-quarter earnings as well as cash flows.
Moreover, the impact of lower volumes might have resulted in less advantageous cost absorption, thereby hurting the company’s quarterly bottom-line performance.
The Zacks Consensus Estimate for the company’s third-quarter earnings is pegged at 2 cents per share, implying a deterioration of 91.3% from the year-ago quarter’s reported earnings.
Earnings Whispers
Our proven model does not predict an earnings beat for Sunrun this time around. 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. But this is not the case here.
Earnings ESP: The company’s Earnings ESP is -280.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Enphase Energy (ENPH - Free Report) reported third-quarter 2020 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 25%.
First Solar (FSLR - Free Report) reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.
SunPower (SPWR - Free Report) incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.
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Sunrun (RUN) to Report Q3 Earnings: What's in the Cards?
Sunrun Inc. (RUN - Free Report) is set to report third-quarter 2020 results on Nov 5, after market close.
In the last reported quarter, the company witnessed a negative earnings surprise of 200.00%. In the trailing four quarters, Sunrun delivered negative earnings surprise of 238.19%, on average.
Let's take a closer look at the factors influencing the company’s upcoming quarterly results.
Factors Under Consideration
Sunrun has been experiencing lower order volumes in the recent past due to restricted access to certain sales channels, courtesy of the COVID-19 pandemic impacts. Resultantly, lower installation volumes have been hurting its top-line performance.
Sunrun Inc. Price and EPS Surprise
Sunrun Inc. price-eps-surprise | Sunrun Inc. Quote
Although order volumes have started to improve since late April 2020, with the economy slowly starting to recover, it seems highly unlikely that order volumes reached the pre-COVID levels during the third quarter. Thus, we remain skeptical about the company’s ability to post revenue growth on a year-over-year basis in the soon-to-be-reported quarter.
However, grid service revenues are expected to have been solid on account of notable awards that the company received in the past couple of quarters.
Notably, the Zacks Consensus Estimate for third-quarter sales is pegged at $206.3 million, which indicates a 4.3% drop from the year-ago quarter’s reported figure.
In July, Sunrun announced that it will acquire Vivint Solar for an enterprise value of $3.2 billion. The deal was closed in September. We expect costs incurred to fund the transaction to have had an adverse impact on the company’s third-quarter earnings as well as cash flows.
Moreover, the impact of lower volumes might have resulted in less advantageous cost absorption, thereby hurting the company’s quarterly bottom-line performance.
The Zacks Consensus Estimate for the company’s third-quarter earnings is pegged at 2 cents per share, implying a deterioration of 91.3% from the year-ago quarter’s reported earnings.
Earnings Whispers
Our proven model does not predict an earnings beat for Sunrun this time around. 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. But this is not the case here.
Earnings ESP: The company’s Earnings ESP is -280.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sunrun currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Solar Releases
Enphase Energy (ENPH - Free Report) reported third-quarter 2020 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 25%.
First Solar (FSLR - Free Report) reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.
SunPower (SPWR - Free Report) incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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