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Sunrun (RUN) to Report Q2 Earnings: What's in the Cards?

Zacks Equity Research

Sunrun Inc. RUN is set to release second-quarter 2019 results on Aug 7, after market close.

In the last reported quarter, the company delivered a negative earnings surprise of 137.50%. Moreover, it missed the Zacks Consensus Estimate in all the trailing four quarters, the average miss being 109.28%.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

Sunrun, during the first quarter, achieved a 27% year-over-year megawatt deployment growth by adding more than 11,400 customers. Considering the increased traction of solar energy in the country, we may expect the upcoming results to reflect similar megawatt deployment growth for the company. This, in turn, should boost its top line.

Moreover, the company has been steadily installing its Brightbox battery systems and expects the installations to grow more than 100% in 2019. In fact, during the second quarter, Sunrun launched the Brightbox systems in a few more states within the United States. This, in turn, is expected to contribute to its second-quarter revenues.

In line with the developments, the Zacks Consensus Estimate for second-quarter revenues of $189 million indicates a rise of 10.6% from the prior-year quarter’s reported figure.

Sunrun expects to witness a decline in its creation cost for the remainder of 2019. Moreover, the company has been achieving significant annual cost reductions over the last three years.

We expect such positive projections to boost its second-quarter bottom-line results. In line with this, the Zacks Consensus Estimate for Sunrun’s second-quarter earnings of 17 cents suggests a surge of 183.3% from year-ago reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively show that Sunrun will beat estimates in the second quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen, and here the case is not that.

Earnings ESP: Sunrun has an Earnings ESP of +107.70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Sunrun Inc. Price and EPS Surprise

Sunrun Inc. Price and EPS Surprise

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

Recent Solar Releases

SunPower Corp. SPWR incurred adjusted loss of 22 cents per share in the second quarter, wider than the Zacks Consensus Estimate of a loss of 9 cents. The company had incurred a loss of a penny per share in the year-ago quarter. It carries a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

Enphase Energy, Inc. ENPH, a Zacks Rank #2 stock, reported second-quarter 2019 adjusted earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 13 cents by 38.5%. The bottom line, moreover, improved from a penny registered in the prior-year quarter.

First Solar Inc. FSLR, a Zacks Rank #3 stock, incurred a loss of 18 cents per share in second-quarter 2019. The Zacks Consensus Estimate for earnings was pegged at 2 cents. The reported figure, however, improved from the prior-year quarter’s loss of 46 cents per share.

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