Residential solar energy company Sunrun (NASDAQ:RUN) will be reporting results tomorrow afternoon. Here’s what you need to know.
Sunrun missed analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $537.2 million, down 4.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates. It added 31,910 customers to reach a total of 1.02 million.
Is Sunrun a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sunrun’s revenue to grow 3.4% year on year to $534.3 million, a reversal from the 15.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sunrun has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Sunrun’s peers in the renewable energy segment, some have already reported their Q4 results, giving us a hint as to what we can expect. American Superconductor delivered year-on-year revenue growth of 56%, beating analysts’ expectations by 8.4%, and Nextracker reported a revenue decline of 4.4%, topping estimates by 3.6%. American Superconductor traded up 33.9% following the results while Nextracker was also up 24.3%.
Read our full analysis of American Superconductor’s results here and Nextracker’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed’s rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the renewable energy stocks have shown solid performance, the group has generally underperformed, with share prices down 5.7% on average over the last month. Sunrun is down 7.8% during the same time and is heading into earnings with an average analyst price target of $17.75 (compared to the current share price of $8.47).
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