The Q3 earnings cycle is drawing to a close, with approximately 87.1% of the market cap of the S&P 500 index having released quarterly numbers as of Nov 4. Reported results reveal a 3.6% increase in third-quarter earnings on 2.4% higher revenues.
About 77 S&P 500 members will report results in the upcoming weeks. Overall earnings are anticipated to witness a 3% improvement on 1.5% higher revenues, with four 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 Preview 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, solar 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 9.5% in 2016 and 5.8% in 2017. The EIA also projects utility-scale solar generating capacity to increase from 10 gigawatts (“GW”) at the end of 2014 to 27 GW in 2017, which reflects an average annual growth rate of 39%, the highest for all sources of renewable electricity generation.
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, the long-term fundamentals remain favorable.
Let’s take a sneak peek into three important clean energy stocks that are scheduled to report third-quarter earnings on Nov 9.
SunPower Corporation (SPWR - Free Report) posted a negative earnings surprise of 6.45% in the preceding quarter.
SunPower has an Earnings ESP 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 67 cents. The company has a Zacks Rank #3.
Our proven model does not conclusively show that SunPower is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case for SunPower.
SolarEdge Technologies, Inc. (SEDG - Free Report) is a provider of inverter solution. The company's SolarEdge system offers power optimizers, inverters and a cloud-based monitoring platform.
The company reported a positive earnings surprise of 8.33% in the prior quarter. It has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
SolarEdge has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 39 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FutureFuel Corp. (FF - Free Report) is a manufacturer of diversified chemical products and bio-based products comprising biofuels and bio-based specialty chemical products.
The company reported a positive earnings surprise of 37.50% last quarter. It has a Zacks Rank #3.
The company has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 24 cents.
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