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Azure Power Global (AZRE) Q2 Earnings Miss, Revenues Rise Y/Y

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Azure Power Global Ltd. (AZRE - Free Report) reported fiscal second-quarter 2020 adjusted loss of 25 cents per share. However, the Zacks Consensus Estimate was pegged at earnings of 4 cents. However, the bottom line rose from a loss of 3 cents per share in the prior-year quarter.

Revenues

Azure Power Global’s revenues of $40.3 million in the quarter missed the Zacks Consensus Estimate of $43.6 million by 7.6%. However, revenues rose 31.3% from the year-ago quarter’s $30.7 million. The increase was driven by the commissioning of new projects between Sep 30, 2018, and the end of third-quarter 2019.

Operational Highlights

Total operating expenses were $20.4 million at the end of fiscal second-quarter 2020, up 45.7% year over year. Operating expenses in the reported quarter grew on escalated costs of operations, higher general and administrative expenses, and higher depreciation and amortization expenses.

Net interest expenses during the quarter were $27.2 million, up 53% year over year. The increase was primarily due to lower interest income of $2 million, and higher interest expenses on account of additional borrowings related to the projects commissioned since Sep 30, 2018.

Key Highlights

Electricity generation during the quarter was 610 million kWh, which increased 238 million kWh or 64% year over year. The increase was principally a result of additional operating capacity during the third quarter.

Total operating megawatts (MW) at the end of fiscal second-quarter 2020 were 1,798 MW, up 77% on a year-over-year basis.

Azure Power Global Ltd. Price, Consensus and EPS Surprise

Financial Performance

Azure Power Global had $91.4 million of cash and cash equivalents, as of Sep 30, 2019, down from $104.1 million at the end of fiscal second-quarter 2019.

Net cash from operating activities was $21.4 million at the end of fiscal second-quarter 2020 compared with $24.3 million in the year-ago quarter.

The company’s long-term debt was $164.1 million at the end of fiscal second-quarter 2020 compared with $891.5 million as of Mar 31, 2019.

Fiscal 2020 Guidance

For the fiscal year ending Mar 31, 2020, Azure Power Global now expects to have 1,800-1,825 MWs in operation. Additionally, the company reiterated its revenue guidance of $181-$189 million. Currently, the Zacks Consensus Estimate for the company’s 2019 revenues is pegged at $194.4 million, which lies above the company’s guided range.

Zacks Rank

Azure Power Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

SunPower Corp. (SPWR - Free Report) reported adjusted earnings of 22 cents per share in third-quarter 2019. The Zacks Consensus Estimate was a loss of a penny. The company had incurred a loss of 29 cents per share in the year-ago quarter.

Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2019 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents by 20%. The bottom line also improved a massive 650% from 4 cents reported in the prior-year quarter.

First Solar Inc. (FSLR - Free Report) reported third-quarter 2019 adjusted earnings of 29 cents per share, missing the Zacks Consensus Estimate of $1.06 by 72.6%. The reported number, however, grew from the prior-year quarter’s loss per share of 18 cents.

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