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Azure Power Global (AZRE) Rises 1.4% Following Q1 Earnings Beat

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Azure Power Global Ltd.'s AZRE share price witnessed a 1.4% rise after the release of its first-quarter fiscal 2021 results. The price rise resulted from the company reporting first-quarter fiscal 2021 adjusted earnings of 7 cents per share. The Zacks Consensus Estimate was pegged at a loss of 23 cents. The company’s bottom line rose from earnings of 3 cents per share in the prior-year quarter.

Revenues

Azure Power Global’s revenues of $52.2 million in the quarter surpassed the Zacks Consensus Estimate of $51 million by 2.4%. Moreover, revenues increased 16% from the year-ago quarter’s figure. The increase was driven by revenues generated from projects, which were commissioned after Jun 30, 2019.

Operational Highlights

Total operating expenses were $18.5 million at the end of fiscal first-quarter 2021, down 18.5% year over year. Operating expenses in the reported quarter declined on lower general and administrative expenses.

Net interest expenses during the quarter were $28.7 million, up 39% year over year. The increase in net interest expenses was primarily due to additional interest expenses related to projects commissioned during the past 12 months.

Key Highlights

Operating Megawatts (MW) were 1,809 MWs as of Jun 30, 2020, witnessing an increase of 12% from Jun 30, 2019.

Electricity generation during the quarter ended Jun 30, 2020, was 883.9 million kWh, witnessing an increase of 183.8 million kWh or 26% over the quarter ended Jun 30, 2019. The increase in electricity generation was principally a result of additional operating capacity during the period, driven by the commissioning of new projects.

Azure Power Global Ltd. Price, Consensus and EPS Surprise

Azure Power Global Ltd. Price, Consensus and EPS Surprise
Azure Power Global Ltd. Price, Consensus and EPS Surprise

Azure Power Global Ltd. price-consensus-eps-surprise-chart | Azure Power Global Ltd. Quote

Financial Performance

Azure Power Global had $105.5 million of cash and cash equivalents as of Jun 30, 2020, down from $129.9 million as of Mar 31, 2020.

The company’s long-term debt was $1,184.8 million at the end of fiscal first-quarter 2021 compared with $1,148.6 million as of Mar 31, 2020.

Net cash from operating activities was $7.5 million at the end of fiscal first-quarter 2021 compared with $49.2 million as of Mar 31, 2020.

Fiscal 2021 Guidance

For the fiscal year ending Mar 31, 2021, Azure Power Global now expects to have 2,650-2,950 MWs in operation and revenues of $209-$220 million. Currently, the Zacks Consensus Estimate for the company’s 2021 revenues is pegged at $207.4 million, which lies below the company’s guided range.

Zacks Rank

Azure Power Global currently carries a Zacks Rank #4 (Sell).

Recent Solar Releases

Enphase Energy, Inc. ENPH, a Zacks Rank #3 (Hold) stock, reported second-quarter 2020 adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of 14 cents by 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SolarEdge Technologies, Inc. SEDG, a Zacks Rank #3 stock, reported second-quarter 2020 adjusted earnings of 97 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents by 40.6%.

SunPower Corp. SPWR, a Zacks Rank #3 stock, incurred an adjusted loss of 22 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 42 cents.

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