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Solar Stocks to Report Earnings on May 9: SPWR, SEDG, VSLR
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The Q1 earnings cycle is drawing to a close with approximately 85.7% of the market cap or 412 members of the S&P 500 index having released quarterly numbers as of May 5. Reported results reveal a 14.2% increase in first-quarter earnings on 7.3% higher revenues. Among them, 73.3% beat EPS estimates while 67.7% topped revenue estimates.
About 43 S&P 500 members will report results in this week. Overall earnings are anticipated to witness a 12.7% improvement on 6.2% higher revenues, with three of the 16 Zacks sectors witnessing growth in the negative territory. Notably, this could be the third straight quarter to record earnings growth after five quarters of back-to-back declines. For more details, you may go through our Earnings Preview report.
Now, let us focus on the solar industry as it is expected to see quite a few of the major solar companies coming up with financial numbers.
The U.S. solar industry has witnessed significant growth over the last several years. The implementation of a number of important decisions in 2015 by the state and federal governments further fueled its growth and continues to drive the industry.
A U.S. Energy Information Administration (“EIA”) report indicates continued growth in utility-scale solar power capacity, in fact by almost 44% from 21 GW at the end of 2016. The projected increase will bring the amount of solar capacity to 31 GW at the end of 2018. In spite of the rapid uptake, solar will still constitute just 1% of total U.S. utility-scale generation in 2018, indicating immense scope for growth.
Over the past few years, utility-scale solar has represented almost two thirds of the market, and this trend will likely continue in the near term, given the huge pipeline of projects under construction.
Let’s take a look at three important solar stocks – SunPower Corporation (SPWR - Free Report) , SolarEdge Technologies, Inc. (SEDG - Free Report) and Vivint Solar, Inc. , which are scheduled to report first-quarter earnings on May 9.
SunPower designs and manufactures high-efficiency silicon solar cells and solar panels based on an all-back contact cell design. Its solar cells and panels generate electricity from sunlight for residential, commercial and remote power applications.
It posted a negative earnings surprise of 43.14% in the preceding quarter. Notably, the company missed the Zacks Consensus Estimate in the past four quarters, with an average negative surprise of 37.16%.
Our proven model does not 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. That is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company has an Earnings ESP of -27.27%. This is because both the Most Accurate estimate stands at a loss of 84 cents, while the Zacks Consensus Estimate is pegged at a loss of 66 cents. Although the company has a Zacks Rank #3, its negative ESP complicates our surprise prediction in this quarter.
SolarEdge provides inverter solution. The company's SolarEdge system offers power optimizers, inverters and a cloud-based monitoring platform. It serves residential solar installations to commercial and small utility-scale solar installations.
In the last quarter, it reported negative earnings surprise of 4.35%. However, the company surpassed the Zacks Consensus Estimate in three of the past four quarters, with an average positive surprise of 15.70%.
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 23 cents. It currently carries a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult for the quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
SolarEdge Technologies, Inc. Price and EPS Surprise
Vivint Solar is a provider of residential solar energy systems in the U.S. It designs, installs, and maintains cost-effective solar energy systems.
In the prior quarter, it reported a positive earnings surprise of 2.38%. Notably, the company surpassed the Zacks Consensus Estimate in three of the past four quarters, with an average positive surprise of 6.89%.
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 a loss of 48 cents. It currently carries a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult for the quarter.
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
Image: Bigstock
Solar Stocks to Report Earnings on May 9: SPWR, SEDG, VSLR
The Q1 earnings cycle is drawing to a close with approximately 85.7% of the market cap or 412 members of the S&P 500 index having released quarterly numbers as of May 5. Reported results reveal a 14.2% increase in first-quarter earnings on 7.3% higher revenues. Among them, 73.3% beat EPS estimates while 67.7% topped revenue estimates.
About 43 S&P 500 members will report results in this week. Overall earnings are anticipated to witness a 12.7% improvement on 6.2% higher revenues, with three of the 16 Zacks sectors witnessing growth in the negative territory. Notably, this could be the third straight quarter to record earnings growth after five quarters of back-to-back declines. For more details, you may go through our Earnings Preview report.
Now, let us focus on the solar industry as it is expected to see quite a few of the major solar companies coming up with financial numbers.
The U.S. solar industry has witnessed significant growth over the last several years. The implementation of a number of important decisions in 2015 by the state and federal governments further fueled its growth and continues to drive the industry.
A U.S. Energy Information Administration (“EIA”) report indicates continued growth in utility-scale solar power capacity, in fact by almost 44% from 21 GW at the end of 2016. The projected increase will bring the amount of solar capacity to 31 GW at the end of 2018. In spite of the rapid uptake, solar will still constitute just 1% of total U.S. utility-scale generation in 2018, indicating immense scope for growth.
Over the past few years, utility-scale solar has represented almost two thirds of the market, and this trend will likely continue in the near term, given the huge pipeline of projects under construction.
Let’s take a look at three important solar stocks – SunPower Corporation (SPWR - Free Report) , SolarEdge Technologies, Inc. (SEDG - Free Report) and Vivint Solar, Inc. , which are scheduled to report first-quarter earnings on May 9.
SunPower designs and manufactures high-efficiency silicon solar cells and solar panels based on an all-back contact cell design. Its solar cells and panels generate electricity from sunlight for residential, commercial and remote power applications.
It posted a negative earnings surprise of 43.14% in the preceding quarter. Notably, the company missed the Zacks Consensus Estimate in the past four quarters, with an average negative surprise of 37.16%.
Our proven model does not 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. That is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company has an Earnings ESP of -27.27%. This is because both the Most Accurate estimate stands at a loss of 84 cents, while the Zacks Consensus Estimate is pegged at a loss of 66 cents. Although the company has a Zacks Rank #3, its negative ESP complicates our surprise prediction in this quarter.
SunPower Corporation Price and EPS Surprise
SunPower Corporation Price and EPS Surprise | SunPower Corporation Quote
SolarEdge provides inverter solution. The company's SolarEdge system offers power optimizers, inverters and a cloud-based monitoring platform. It serves residential solar installations to commercial and small utility-scale solar installations.
In the last quarter, it reported negative earnings surprise of 4.35%. However, the company surpassed the Zacks Consensus Estimate in three of the past four quarters, with an average positive surprise of 15.70%.
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 23 cents. It currently carries a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult for the quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
SolarEdge Technologies, Inc. Price and EPS Surprise
SolarEdge Technologies, Inc. Price and EPS Surprise | SolarEdge Technologies, Inc. Quote
Vivint Solar is a provider of residential solar energy systems in the U.S. It designs, installs, and maintains cost-effective solar energy systems.
In the prior quarter, it reported a positive earnings surprise of 2.38%. Notably, the company surpassed the Zacks Consensus Estimate in three of the past four quarters, with an average positive surprise of 6.89%.
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 a loss of 48 cents. It currently carries a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult for the quarter.
Vivint Solar, Inc. Price and EPS Surprise
Vivint Solar, Inc. Price and EPS Surprise | Vivint Solar, Inc. Quote
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>