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Renewables May Aid Infrastructure and Energy (IEA) Q3 Earnings

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Infrastructure and Energy Alternatives, Inc. (IEA - Free Report) or IEA’s Renewables segment — accounting for 68% of total revenues — is expected to have registered growth. Consequently, the segment is likely to contribute to overall revenues when it reports third-quarter 2020 results on Nov 9.

The company has exhibited a solid performance so far this year, with the stock climbing 191.9%, having comfortably outperformed the industry’s growth of 7.8%. IEA — which shares space with FirstService Corporation (FSV - Free Report) , Redfin Corporation (RDFN - Free Report) and PennyMac Mortgage Investment Trust (PMT - Free Report) in the Zacks Real Estate – Operations industry — has been riding high on its focus on construction of renewable power production capacity, particularly from wind and solar.

Click here to know how the company’s overall Q3 performance is expected to be.

A Look at Q3 Segmental Performance

The company’s Renewables segment is expected to have registered growth, courtesy of tailwinds such as state renewable energy mandates and the push for clean energy. Several solar and wind projects are anticipated to have aided its top line. Notably, IEA is one of the largest providers in the renewable energy industry.

Precisely, more than 40 states in the United States have adopted renewable portfolio standards. These standards require utilities to continue increasing their generation mix of renewables, which is creating a need for wind and solar construction well beyond the expiration of tax credits and even after the COVID-19 crisis. This is expected to have benefited the segment revenues.

Several wind repowering projects like those in South Dakota, Minnesota and Texas bode well. Also, mechanical overhauls of replacement of major components of the existing turbines and increase in the amount of power provided by each wind farm to the respective geographic region served are expected to have aided the Renewables unit.

IEA — a Zacks Rank #3 (Hold) company — surpassed analysts’ expectations in two of the trailing four quarters and missed on the other two occasions, with the average surprise being 82.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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