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Sunrun (RUN) to Report Q1 Earnings: What's in the Cards?

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Sunrun Inc. RUN is set to report first-quarter 2021 results on May 5, after market close.

In the last reported quarter, the company witnessed a negative earnings surprise of 185.71%. In the trailing four quarters, Sunrun delivered earnings surprise of 59.82%, on average.

Let's take a closer look at the factors likely to influence the company’s upcoming quarterly results.

Factors to Consider

Sunrun has been witnessing volume growth courtesy of modest recovery in solar demand since the end of third-quarter 2020. Such volume growth is likely to have translated into solid year-over-year growth in solar energy capacity installed, thereby bolstering revenue growth for the company in the first quarter.

Sunrun Inc. Price and EPS Surprise

Sunrun Inc. Price and EPS Surprise
Sunrun Inc. Price and EPS Surprise

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

Further, the company has been lately witnessing solid customer growth as accelerating extreme weather events forced electric consumers to choose solar power and batteries over conventional fossil fuel sources. Such customer growth must have taken place in the soon-to-be-reported quarter as well, thereby contributing favorably to Sunrun’s top-line performance.

Moreover, following the Vivint Solar acquisition last year, the company has doubled its battery attachment rate in California, which in turn is expected to have boosted its first-quarter revenues, as a whole.
Notably, the Zacks Consensus Estimate for first-quarter sales is pegged at $313.4 million, which indicates a 48.7% increase from the year-ago quarter’s reported figure.

The company increased run rate cost synergies target in the recent times, which is expected to have contributed to its earnings in the soon-to-be-reported quarter.

Moreover, in relation to the Vivint Solar acquisition last year, the company has begun the integration procedure since the foruth quarter of 2020. This is expected to have led to its margin expansion during the first quarter, thus boosting its bottom-line performance.

The Zacks Consensus Estimate for the company’s first-quarter bottom line is pegged at a loss of 3 cents per share, implying an improvement from the year-ago quarter’s reported loss of 23 cents.

Earnings Whispers

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 chances of an earnings beat. But this is not the case here.

Earnings ESP: The company’s Earnings ESP is -190.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sunrun currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Solar Releases

Enphase Energy ENPH reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents.

First Solar FSLR reported first-quarter 2021 adjusted earnings of $1.96 per share, which handily surpassed the Zacks Consensus Estimate of $1.00.

Upcoming Solar Releases

SunPower Corporation SPWR is scheduled to report quarterly numbers on May 5.

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