Solar tracking systems manufacturer Array (NASDAQ: ARRY) will be reporting earnings this Wednesday after market close. Here’s what to expect.
Array beat analysts’ revenue expectations last quarter, reporting revenues of $223.4 million, down 26.1% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Array a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Array’s revenue to decline 13.4% year on year, a reversal from the 41.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Array rarely misses Wall Street’s revenue estimates.
Looking at Array’s peers in the renewable energy segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bloom Energy delivered year-on-year revenue growth of 166%, beating analysts’ expectations by 27.7%, and Generac reported revenues up 10.6%, falling short of estimates by 0.5%. Bloom Energy traded down 1.9% following the results while Generac was also down 1.9%.
Read our full analysis of Bloom Energy’s results here and Generac’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the renewable energy stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Array is down 19.4% during the same time and is heading into earnings with an average analyst price target of $9.82 (compared to the current share price of $5.67).
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