Sunworks, Inc. (SUNW - Free Report) is set to report first-quarter 2019 results on May 14, after the market closes.
In the last reported quarter, the company delivered a positive earnings surprise of 100%. Moreover, earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 7.50%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
In 2018, Sunworks was awarded 19 projects by Omni worth approximately $4 million. This is likely to generate solid revenues for the company in 2019. Moreover, the company’s growing residential business should boost the top line.
However, as announced in its fourth-quarter earnings call, Sunworks expects soft first-quarter revenues due to the rainy weather in California. In line with this, the Zacks Consensus Estimate for Sunworks’ first-quarter revenues is pegged at $13 million, indicating 3.4% decline from the figure reported in the year-ago quarter.
Meanwhile, Sunworks' operating expenses witnessed a decline for the ninth consecutive time in the fourth quarter of 2018. As the company continues with its efforts to reduce operating expenses, we may expect the declining trend in operating expenses to continue in the soon-to-be-reported quarterly results. Additionally, management expects total interest expenses to be relatively constant, going forward. These factors should cumulatively benefit Sunworks’ first-quarter bottom-line performance.
In line with this, the Zacks Consensus Estimate for first-quarter loss is pegged at 3 cents. In the year-ago quarter, the company incurred a loss of 7 cents per share.
Sunworks, Inc. Price and EPS Surprise