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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 slated to report third-quarter 2021 results on Nov 4, after the closing bell.
In the last reported quarter, the company witnessed a negative earnings surprise of 600.00%. Sunrun has a trailing four-quarter earnings surprise of 61.91%, on average.
Factors to Note
During the past couple of quarters, the company has been witnessing a strong volume growth in installations in new homes business, channel partner business and direct business, thus recording a strong momentum across all of its business channels. Batteryinstallations have been gaining momentum lately,and Sunrun expects more than 100% growth in battery installations in 2021. These factors are likely to have favored the company’s performance in the third quarter.
The company’spartnership with Ford has been fetching remarkable market share gains for the company.Notably, it resumed the rollout of all-electric F-150 Lightning in May. This, in turn, might have favored the company’s third-quarter performance.
Integration of Vivint Solar, post its acquisition by Sunrun last year,is likely to get reflected in the third-quarter revenues.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $406.5 million, suggesting growth of 93.8% from the year-ago reported figure.
On its second-quarter earnings call, the company announced that it expects to witness margin growth driven by volume expansion across all businesses and solid cost synergies from the Vivint Solar transaction in 2021. This might have contributed significantly to the to-be-reported quarter’s performance.
However, with growth rates accelerating, Sunrun has been incurring more upfront costs such as sales and marketing costs, along with in construction systems prior to recognizing the volume in future periods. This might have weighed on its overall bottom-line performance.
The Zacks Consensus Estimate for the company’s third-quarter earningsis pegged at 7 cents per share,suggesting a declineof 75% from the year-ago quarter.
Our proven model predicts 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. This is the case here as you will see.
Earnings ESP:The company’s Earnings ESP is +504.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three other Solar players you may want to consider, as these too have the right combination of elements to post an earnings beat this season:
FTC Solar, Inc (FTCI - Free Report) has an Earnings ESP of +6.57% and a Zacks Rank #3.
Array Technologies(ARRY - Free Report) has an Earnings ESP of +146.67% and a Zacks Rank #3.
A Recent Solar Release
Enphase Energy (ENPH - Free Report) reported third-quarter 2021 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%.
Unique Zacks Analysis of Your Chosen Ticker
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Sunrun (RUN) to Report Q3 Earnings: What's in the Cards?
Sunrun Inc. (RUN - Free Report) is slated to report third-quarter 2021 results on Nov 4, after the closing bell.
In the last reported quarter, the company witnessed a negative earnings surprise of 600.00%. Sunrun has a trailing four-quarter earnings surprise of 61.91%, on average.
Factors to Note
During the past couple of quarters, the company has been witnessing a strong volume growth in installations in new homes business, channel partner business and direct business, thus recording a strong momentum across all of its business channels. Batteryinstallations have been gaining momentum lately,and Sunrun expects more than 100% growth in battery installations in 2021. These factors are likely to have favored the company’s performance in the third quarter.
The company’spartnership with Ford has been fetching remarkable market share gains for the company.Notably, it resumed the rollout of all-electric F-150 Lightning in May. This, in turn, might have favored the company’s third-quarter performance.
Integration of Vivint Solar, post its acquisition by Sunrun last year,is likely to get reflected in the third-quarter revenues.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $406.5 million, suggesting growth of 93.8% from the year-ago reported figure.
On its second-quarter earnings call, the company announced that it expects to witness margin growth driven by volume expansion across all businesses and solid cost synergies from the Vivint Solar transaction in 2021. This might have contributed significantly to the to-be-reported quarter’s performance.
However, with growth rates accelerating, Sunrun has been incurring more upfront costs such as sales and marketing costs, along with in construction systems prior to recognizing the volume in future periods. This might have weighed on its overall bottom-line performance.
The Zacks Consensus Estimate for the company’s third-quarter earningsis pegged at 7 cents per share,suggesting a declineof 75% from the year-ago quarter.
Sunrun Inc. Price and EPS Surprise
Sunrun Inc. price-eps-surprise | Sunrun Inc. Quote
What the Zacks Model Unveils
Our proven model predicts 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. This is the case here as you will see.
Earnings ESP:The company’s Earnings ESP is +504.92%. 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 #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three other Solar players you may want to consider, as these too have the right combination of elements to post an earnings beat this season:
FTC Solar, Inc (FTCI - Free Report) has an Earnings ESP of +6.57% and a Zacks Rank #3.
Array Technologies(ARRY - Free Report) has an Earnings ESP of +146.67% and a Zacks Rank #3.
A Recent Solar Release
Enphase Energy (ENPH - Free Report) reported third-quarter 2021 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%.