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Ballard Power (BLDP) to Report Q4 Earnings: What's in Store?

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Ballard Power Systems, Inc. BLDP is scheduled to report fourth-quarter 2020 results on Mar 11.

For the fourthquarter, the Zacks Consensus Estimate for revenuesis pegged at $29.5 million, indicating a decline of 29.5% from the prior-year quarter’s reported number.

Further, the Zacks Consensus Estimate for the bottom line stands at a loss of 4 cents per share. Notably, the company reported a loss of 4 cents in the year-ago quarter.

Ballard Power’s bottom line missed the Zacks Consensus Estimate in two of the trailing four quarters, meeting the same twice. It has a negative surprise of 18.75%, on average.

Ballard Power Systems, Inc. Price and EPS Surprise

Ballard Power Systems, Inc. Price and EPS Surprise
Ballard Power Systems, Inc. Price and EPS Surprise

Ballard Power Systems, Inc. price-eps-surprise | Ballard Power Systems, Inc. Quote

Factors at Play

The company’s fourth-quarter results are likely to reflect strength across its fuel-cell products and services.

Increasing fuel-cell stack shipment in Europe is expected to have contributed well to its Backup Power revenues during the quarter under review. Moreover, the rising adoption of hydrogen-based backup power fuel-cell stacks is expected to have driven backup power revenues.

Further, growing shipments of fuel-cell products in China are expected to have aided growth in the Heavy Duty Motive revenues of the company in the to-be-reported quarter.

Furthermore, bolstering quoting activities across the heavy-duty motive segments of bus, commercial truck, rail and marine are anticipated to have been tailwinds.

All these are expected to have continued aiding growth in the company’s fuel-cell products and services’ revenues in the fourth quarter.

Apart from these, the company’s strong initiatives to bolster its inventory positions in key materials are anticipated to have helped counter the coronavirus-induced supply-chain disruptions in the soon-to-be-reported quarter.

However, headwinds related to the pandemic are expected to have weighed heavily on Ballard Power’s customer orders in the quarter under review.

Also, a slowdown in fuel-cell stack shipments to Plug Power is likely to have hindered growth in the company’s Material Handling revenues in the fourth quarter.

Additionally, sluggishness across the technology solutions platform is anticipated to get reflected in Ballard Power’s fourth-quarter results.

Moreover, weak momentum across the Audi program, the Weichai-Ballard joint venture technology transfer program and the Siemens development program is anticipated to have remained concerning for the company’s technology solutions platform in the quarter under review.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Ballard Power 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.

Ballard Power has an Earnings ESP of -7.69% and a Zacks Rank #3, currently.

Stocks to Consider

Here are some stocks worth considering from the same sector as our proven model shows that thesehave the right combination of elements to beat on earnings this reporting cycle.

Micron Technology, Inc. MU has an Earnings ESP of +5.16% and it sports a Zacks Rank #1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gogo Inc. GOGO has an Earnings ESP of +10% and a Zacks Rank #3 at present.

Dollar General Corporation DG has an Earnings ESP of +1.23% and a Zacks Rank #3, presently.

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