What's in Store for Array Technologies (ARRY) in Q3 Earnings?
Array Technologies, Inc. ARRY is slated to report third-quarter 2023 results on Nov 7, after market close.
In the last reported quarter, the company delivered an earnings surprise of 147.37%. It also delivered a trailing four-quarter average earnings surprise of 235.45%.
Factors to Note
Increasing average selling price of ARRY’s products is likely to have favorably contributed to its third-quarter revenues.
Array Technologies, Inc. Price and EPS Surprise
Array Technologies, Inc. price-eps-surprise | Array Technologies, Inc. Quote
However, America’s high-interest rate environment has led to a surge in financing costs for panel installations for the past few months. As a result, the demand scenario in the U.S. market has been a bit bleak lately, which, in turn, might have affected Array Technologies’ megawatt shipments and, thereby, its revenues in the third quarter.
Also, a shift in delivery timing of some of the company’s projects to 2024 from 2023 might have had an adverse impact on its third-quarter top-line performance.
The Zacks Consensus Estimate for revenues is pegged at $388.3 million, indicating a 24.6% decline from the year-ago quarter’s reported number.
Operating expenses are expected to have been higher year over year in the third quarter, owing to an increase in headcount and higher professional fees related to accounting and finance transformation initiatives. This, along with dismal revenue expectations as well as high interest expenses, might have adversely impacted ARRY’s quarterly bottom-line performance amid the company’s cost-saving initiatives.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 11 cents per share, implying a decline of 39% from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Array Technologies 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, which is not the case here.
Earnings ESP: ARRY’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Array Technologies currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Here are three companies from the same sector you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Enovix Corporation ENVX currently has an Earnings ESP of +8.33% and a Zacks Rank #3. The Zacks Consensus Estimate for Enovix’s third-quarter sales is pegged at $0.18 million.
The consensus estimate for third-quarter earnings is pegged at a loss of 24 cents per share. ENVX has a trailing four-quarter average earnings surprise of 1.29%.
Crescent Energy Company CRGY currently has an Earnings ESP of +30.52% and a Zacks Rank #2. The Zacks Consensus Estimate for Crecent Energy’s third-quarter sales implies a decline of 34.7% from the prior-year reported figure.
CRGY delivered a trailing four-quarter average earnings surprise of 177.30%. The consensus estimate for third-quarter earnings is pegged at 26 cents per share.
Devon Energy DVN currently has an Earnings ESP of +0.72% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter sales is pegged at $4.03 billion, indicating a decline of 25.8% from the year-ago quarter’s reported number.
The consensus mark for third-quarter earnings is pegged at $1.55 per share. The company delivered a trailing four-quarter average earnings surprise of 0.78%.
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Devon Energy Corporation (DVN) : Free Stock Analysis Report
Array Technologies, Inc. (ARRY) : Free Stock Analysis Report
Enovix Corporation (ENVX) : Free Stock Analysis Report
Crescent Energy Company (CRGY) : Free Stock Analysis Report
