After a burst of second-quarter earnings releases by a number of companies last week, we are gearing up for the next onslaught of reports through this week. So far, 73.5% of the market cap of the S&P 500 index have released quarterly numbers. Reported results reveal a 3.3% decline in second-quarter earnings due to a 0.9% dip in revenues.

Over 1000 companies, including 116 S&P 500 members, are lining up to release quarterly numbers this week and by the end of it, nearly 87% of the index members will have declared results. Overall earnings are anticipated to witness a 3.4% decline due to 0.4% lower revenues, with 8 of the 16 Zacks sectors witnessing growth in the negative territory. The picture should become clearer by the end of this week after the majority releases results. For more details, you may go through our Earnings Trends report.

For companies operating in the clean energy space, environmental considerations have been propelling demand for alternative sources of energy to a large extent. In fact, both solar and wind energy got a major boost from the environmental tax credit extensions of Dec 2015.

Further, the U.S. Energy Information Administration (“EIA”) anticipates total renewables used in the electric power sector to increase 11.2% in 2016. The EIA also projects utility-scale solar photovoltaic (“PV”) capacity to increase by nearly 13 gigawatts (“GW”) in the 2015–2017 period. Wind capacity, on the other hand, is forecasted to grow 10% in 2016 and will account for 6% of the total electricity generation in 2017.

These favorable demand growth trends notwithstanding, abundant availability of fossil fuels and the fluctuations in oil prices have emerged as key competitive challenges for this industry. Nevertheless, its long-term fundamentals remain favorable.

Let’s take a look at a couple of clean energy stocks that are scheduled to report second-quarter earnings on Aug 2.

Enphase Energy, Inc. (ENPH Quick QuoteENPH - Free Report) is involved in delivering microinverter technology for the solar industry, which increases the productivity and reliability of solar modules.

Enphase is a Zacks Rank #3 (Hold) stock with an Earnings ESP of 0.00%. Last quarter, the company posted a negative earnings surprise of 13.89%. Our proven model does not conclusively show that Enphase is likely to beat earnings this quarter.

During its first-quarter earnings call, Enphase Energy said that it had witnessed an increase in its customer count, which is expected to continue contributing to its growing market share in the second quarter as well. The company is facing persistent contraction of gross margin, which is anticipated to be reversed by its pricing strategy going forward. Also, Enphase’s consistent focus on cost reduction will help it to meet the cost target for the year.

Enphase Energy provided its outlook for the second quarter wherein revenues are anticipated in the range of $76−$82 million. The company expects gross margins to be 17−20%.

Ormat Technologies, Inc. (ORA Quick QuoteORA - Free Report) is engaged in the development, manufacturing and marketing of innovative power systems. Last quarter, the company posted a positive earnings surprise of 68.57%. It carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

During the first-quarter conference call, the company said that it expects some weakness at the electricity segment in the second quarter, due to higher expenses, which will result in lower margins.

Meanwhile, gross margin in the product segment is expected to be higher than normal in 2016. Ormat plans to make capital investments of about $75 million on new projects under construction and enhancements. These initiatives will aid the company’s performance during the year.

Ormat is positive about its full-year performance based on strong first-quarter results. It provided an outlook for 2016, wherein total revenue is anticipated in the range of $620−$640 million, with the electricity segment contributing $410−$420 million and the product segment accounting for $210−$220 million.

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