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Sunnova Energy (NOVA) to Post Q3 Earnings: What's in Store?

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Sunnova Energy (NOVA - Free Report) is set to report third-quarter 2020 results on Oct 28, after market close.

In the last reported quarter, the company witnessed a negative earnings surprise of 66.67%. In the trailing four quarters, Sunnova Energy came up with a negative earnings surprise of 92.43%, on average.

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

Factors Under Consideration

Over the past couple of quarters, Sunnova Energy's customer base has been expanding, driven by its business model and capitalization strategies. Notably, during the second-quarter earnings call, management announced its anticipation to witness faster customer growth in the third quarter of 2020, led by its expanding dealer network and rising storage attachment rate.

Considering this trend to have actually taken place in the third quarter, our hopes for Sunnova Energy's revenues remain high. In line with this, the Zacks Consensus Estimate for third-quarter sales is pegged at $48 million, which indicates 30.2% growth from the year-ago quarter’s reported figure.

Sunnova Energy has been rapidly lowering its costs on a per-customer basis. In fact, the operating leverage that the company has been achieving lately through customer base growth is expected to have reduced its overall quarterly operating expenses. Such lowering expenses coupled with solid revenue growth expectations are likely to have aided Sunnova Energy’s third-quarter bottom line.

Notably, the Zacks Consensus Estimate for the company’s third-quarter loss is pegged at 18 cents per share, indicating a notable improvement from the year-ago quarter’s reported loss of 62 cents.

Earnings Whispers

Our proven model does not predict an earnings beat for Sunnova Energy 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 -39.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sunnova Energy currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunnova Energy International Inc. Price and EPS Surprise

A Stock to Consider

Here is a solar company you may want to consider as it has the right combination of elements to post an earnings beat in its upcoming release:

First Solar (FSLR - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #3. The company will announce third-quarter 2020 earnings on Oct 27.

Upcoming Solar Releases

Enphase Energy (ENPH - Free Report) carries a Zacks Rank #3 and is set to release third-quarter 2020 results on Oct 27.

SunPower Corporation sports a Zacks Rank #1 and is set to release third-quarter 2020 results on Oct 28.

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Sunnova Energy International Inc. (NOVA) - free report >>

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