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Sunrun (RUN) to Report Q4 Earnings: What's in the Cards?

Zacks Equity Research

Sunrun Inc. RUN is set to release fourth-quarter and 2018 results on Feb 28, after the market closes.

In the last reported quarter, the company witnessed a negative earnings surprise of 105.88%. Moreover, it missed the Zacks Consensus Estimate in three of the trailing four quarters, the average being 54.25%.

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

Factors at Play

Notably, Sunrun achieved 100% megawatt deployment growth by adding more than 13,000 customers during the third quarter of 2018. Considering the increased traction of solar energy in America lately, we may expect the upcoming results to reflect impressive megawatt deployment growth for the company. This, in turn, should boost the top line.

Currently, the Zacks Consensus Estimate for fourth-quarter revenues of $177 million represents rise of 21.2% on a year-over-year basis.

Sunrun achieved 9% annual cost reductions for the last three years. To this end, we expect this trend to continue further and positively impact bottom-line results in the to-be-reported quarter. In line with this, the Zacks Consensus Estimate for Sunrun’s fourth-quarter earnings pegged at 46 cents reflects year-over-year improvement of 84%.

Moreover, during the third-quarter earnings call, Sunrun anticipated the overall project finance activities to increase cash in the fourth quarter. This should get duly reflected in the upcoming quarterly results.

Sunrun Inc. Price and EPS Surprise

 

Sunrun Inc. Price and EPS Surprise | Sunrun Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively show that Sunrun is likely to beat estimates in the fourth 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 0.00%. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Recent Solar Releases

SunPower Corp. SPWR incurred fourth-quarter 2018 adjusted loss of 21 cents per share, narrower than the Zacks Consensus Estimate of a loss of 38 cents.

SolarEdge Technologies SEDG reported fourth-quarter 2018 adjusted earnings of 63 cents per share, which missed the Zacks Consensus Estimate of 70 cents by 10%.

First Solar Inc. FSLR reported fourth-quarter 2018 earnings of 49 cents per share, which missed the Zacks Consensus Estimate of 64 cents by 23.1%.

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