Back to top

Image: Bigstock

Sunrun (RUN) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

Sunrun Inc. (RUN - Free Report) is set to release fourth-quarter and 2019 results on Feb 27, after market close.

In the last reported quarter, the company delivered a negative earnings surprise of 14.81%. Moreover, it missed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 92.27%.

Let’s see how things have shaped up prior to this announcement.

Factors at Play

Sunrun has been witnessing lower-than-expected customer growth due to labor shortages in both installation and sales force. Lower customer growth may have impacted Sunrun’s top line in the fourth quarter.  

In fact, a tight labor market has been constraining Sunrun’s capacity to make adequate installations. Therefore, the company has not been able to fully utilize the growing order for its Brightbox battery system and turn into revenues.

Considering these, the Zacks Consensus Estimate for Sunrun’s fourth-quarter revenues currently pegged at $218.4 million indicates a 9% decline from the year-ago quarter reported number.

Sunrun Inc. Price and EPS Surprise

Sunrun Inc. Price and EPS Surprise

Sunrun Inc. price-eps-surprise | Sunrun Inc. Quote

The company is expected to have incurred lower creation costs in the soon-to-be-reported quarter. This in turn must have boosted its quarterly bottom line. Moreover, costs of solar project deployed by Sunrun’s channel partners as well as installation costs incurred for Sunrun Built systems are likely to have been lower in the fourth quarter. Such cost reductions are likely to have aided earnings in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for Sunrun’s fourth-quarter earnings pegged at 27 cents indicates notable improvement from loss of 5 cents incurred in the year-ago quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Sunrun this time around. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Sunrun has an Earnings ESP of -73.68% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Solar Releases

First Solar Inc. (FSLR - Free Report) reported fourth-quarter 2019 adjusted earnings of $2.02 per share, which missed the Zacks Consensus Estimate of $2.79 by 27.6%.

Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2019 adjusted earnings of 39 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 18.2%.

SolarEdge Technologies (SEDG - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.65 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 26.9%.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2020 today >>