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Orion Energy (OESX) to Post Q4 Earnings: What's in Store?

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Orion Energy Systems, Inc. (OESX - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Jun 4, before the opening bell.

In the last reported quarter, the company’s earnings met the Zacks Consensus Estimate but revenues beat the same. During the quarter, the company posted earnings of 7 cents per share against a loss of 2 cents a year ago. Revenues of $34.2 million for this provider of LED lighting and turnkey energy project solutions grew 110% year over year.

Markedly, Orion Energy reported better-than-expected earnings in three of the last four quarters. It delivered a four-quarter positive surprise of 363.6%, on average.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at 3 cents over the past 30 days. Nonetheless, the estimated figure indicates an increase of 200% year over year. The consensus mark for revenues is pegged at $28.6 million, suggesting 27.5% growth from the year-ago reported figure of $22.4 million.

Orion Energy Systems, Inc. Price and EPS Surprise

Orion Energy Systems, Inc. Price and EPS Surprise

 

Orion Energy Systems, Inc. price-eps-surprise | Orion Energy Systems, Inc. Quote

Factors to Note

Continued successful execution of a nationwide turnkey design-build-install LED lighting system retrofit and controls project for a major national account is expected to have driven the company’s fiscal fourth-quarter revenues and earnings on a year-over-year basis.

Customer-centric approach, understanding of product quality advantages, and custom capabilities and turnkey services are likely to have boosted revenues. Also, product line extensions in both indoor high bay and outdoor product categories added to the positives.

However, disruptions due to the coronavirus pandemic are expected to get reflected on its results to some extent. Also, higher investments in sales and marketing activities — comprising increased commissions based on high sales volumes — are likely to have weighed on margins to some extent.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Orion Energy — which shares space with Acuity Brands Inc. (AYI - Free Report) , Energy Focus Inc. (EFOI - Free Report) and LSI Industries Inc. (LYTS - Free Report) in the Zacks Building Products - Lighting industry — 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. This is not the case here, as you will see below.

Earnings ESP: Orion Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

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