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Sunrun (RUN) to Report Q1 Earnings: What's in the Offing?
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Sunrun Inc. (RUN - Free Report) is scheduled to release its first-quarter 2024 results on May 8 after market close. The company incurred a loss of $1.33, which came in wider than the Zacks Consensus Estimate of a loss of 13 cents in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors at Play
Although solar demand has been on the rise in the United States, the first quarter of a year is typically characterized by a seasonal slowdown after a rush to install projects at the end of the year. Therefore, anticipating that the first quarter of 2024 will also be seasonally a low installation quarter, installation activities for Sunrun might have been dismal, thereby adversely impacting its revenues.
Moreover, the company might have continued to witness a decline in its solar energy capacity installation influenced by the slower-than-expected recovery in California, in relation to the newly adopted changes to this state’s net metering policy. This might have also impacted RUN’s overall top-line performance.
Nevertheless, a growing customer base and subscribers might have aided Sunrun’s revenues to some extent in the first quarter.
From the cost perspective, declining solar and storage equipment costs, lower costs from hardware price reductions, labor efficiency and operating leverage from volume growth are expected to benefit RUN’s overall bottom-line performance in the first quarter.
However, higher interest expenses are likely to have weighed on its earnings.
Q1 Expectations
The Zacks Consensus Estimate for RUN’s first-quarter sales stands at $475.4 million, which suggests a decrease of 19.4% from the year-ago reported number.
The Zacks Consensus Estimate for Sunrun’s first-quarter earnings is pegged at a loss of 50 cents per share, which implies a solid improvement from the first-quarter 2023 reported loss figure of $1.12.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for RUN this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Earnings ESP: RUN has an Earnings ESP of +31.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Below we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
SolarEdge Technologies (SEDG - Free Report) is set to report first-quarter earnings on May 8 after market close. It has an Earnings ESP of +2.69% and carries a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for SEDG’s first-quarter earnings stands at a loss of $1.58 per share, which suggests a significant improvement from the first-quarter 2024 reported loss figure of $2.58. The Zacks Consensus Estimate for first-quarter sales is pegged at $194.8 million.
Nextracker Inc. (NXT - Free Report) is slated to report its first-quarter 2024 results on May 14 after market close. It has an Earnings ESP of +9.80% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for NXT’ fourth-quarter fiscal 2024 earnings stands at 59 cents per share, which calls for a 181% improvement from the fourth-quarter fiscal 2023 reported figure. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $681 million, which implies a 31.4% increase from that reported in the prior-year quarter.
Canadian Solar Inc. (CSIQ - Free Report) is expected to report its first-quarter 2024 results on May 9 before market open. It has an Earnings ESP of +88.57% and carries a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for CSIQ’s first-quarter sales is pegged at $1.28 billion, while that for earnings is pegged at a loss of 26 cents. The company holds a four-quarter average earnings surprise of 56.24%.
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Sunrun (RUN) to Report Q1 Earnings: What's in the Offing?
Sunrun Inc. (RUN - Free Report) is scheduled to release its first-quarter 2024 results on May 8 after market close. The company incurred a loss of $1.33, which came in wider than the Zacks Consensus Estimate of a loss of 13 cents in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors at Play
Although solar demand has been on the rise in the United States, the first quarter of a year is typically characterized by a seasonal slowdown after a rush to install projects at the end of the year. Therefore, anticipating that the first quarter of 2024 will also be seasonally a low installation quarter, installation activities for Sunrun might have been dismal, thereby adversely impacting its revenues.
Sunrun Inc. Price and EPS Surprise
Sunrun Inc. price-eps-surprise | Sunrun Inc. Quote
Moreover, the company might have continued to witness a decline in its solar energy capacity installation influenced by the slower-than-expected recovery in California, in relation to the newly adopted changes to this state’s net metering policy. This might have also impacted RUN’s overall top-line performance.
Nevertheless, a growing customer base and subscribers might have aided Sunrun’s revenues to some extent in the first quarter.
From the cost perspective, declining solar and storage equipment costs, lower costs from hardware price reductions, labor efficiency and operating leverage from volume growth are expected to benefit RUN’s overall bottom-line performance in the first quarter.
However, higher interest expenses are likely to have weighed on its earnings.
Q1 Expectations
The Zacks Consensus Estimate for RUN’s first-quarter sales stands at $475.4 million, which suggests a decrease of 19.4% from the year-ago reported number.
The Zacks Consensus Estimate for Sunrun’s first-quarter earnings is pegged at a loss of 50 cents per share, which implies a solid improvement from the first-quarter 2023 reported loss figure of $1.12.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for RUN this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Earnings ESP: RUN has an Earnings ESP of +31.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Sunrun carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Solar Releases
Below we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
SolarEdge Technologies (SEDG - Free Report) is set to report first-quarter earnings on May 8 after market close. It has an Earnings ESP of +2.69% and carries a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for SEDG’s first-quarter earnings stands at a loss of $1.58 per share, which suggests a significant improvement from the first-quarter 2024 reported loss figure of $2.58. The Zacks Consensus Estimate for first-quarter sales is pegged at $194.8 million.
Nextracker Inc. (NXT - Free Report) is slated to report its first-quarter 2024 results on May 14 after market close. It has an Earnings ESP of +9.80% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for NXT’ fourth-quarter fiscal 2024 earnings stands at 59 cents per share, which calls for a 181% improvement from the fourth-quarter fiscal 2023 reported figure. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $681 million, which implies a 31.4% increase from that reported in the prior-year quarter.
Canadian Solar Inc. (CSIQ - Free Report) is expected to report its first-quarter 2024 results on May 9 before market open. It has an Earnings ESP of +88.57% and carries a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for CSIQ’s first-quarter sales is pegged at $1.28 billion, while that for earnings is pegged at a loss of 26 cents. The company holds a four-quarter average earnings surprise of 56.24%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.