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Sunrun (RUN) to Report Q1 Earnings: What's in the Cards?

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Sunrun Inc. (RUN - Free Report) is slated to report first-quarter 2022 results on May 4 after the closing bell.

In the last reported quarter, the company witnessed an earnings surprise of 0.00%. However, in the trailing four quarters, Sunrun delivered a negative earnings surprise of 186.67%, on average.

Factors to Note

The robust customer demand and strong growth in volume and new installations are anticipated to have favorably impacted RUN’s top line in the soon-to-be-reported quarter.

Also, the company’s partnership with Ford is expected to have added impetus tothe company’s performancein the to-be-reported quarter. Additionally, the integration of Vivint Solar is also expected to have favorably contributed to its first-quarter revenues.

Furthermore, a ramp-up in battery installation is anticipated to have boosted the revenues of Sunrun in the first quarter.

Considering all these factors, we remain optimistic about the company’s top line in the first quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $382.9 million, suggesting growth of 14.4% from the year-ago reported figure.

From the cost perspective, sales-related and initial project development costs, coupled with Omicron-related effects on margins and an unfavorable product mix, may have dampened Sunrun’s margins in the soon-to-be-reported quarter. This, in turn, may have adversely impacted its first-quarter earnings. However, modest price increases implemented by the company may have offset the adverse cost impact on its first-quarter earnings.

Additionally, solid cost synergies from the Vivint Solar transaction are expected to have added impetus to its bottom line in the first quarter.

The Zacks Consensus Estimate for RUN’s first-quarter earningsis pegged at a loss of 14 cents per share,suggesting a deteriorationfrom the year-ago quarter’s reported figure.

Sunrun Inc. Price and EPS Surprise

Sunrun Inc. Price and EPS Surprise

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

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Sunrun this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here as you will see.

The company has an Earnings ESP of -235.7% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

A Stock to Consider

Here is one Solar player you may want to consider as it has the right combination of elements to post an earnings beat this season:

SunPower currently has an Earnings ESP of +26.31% and a Zacks Rank #3. The Zacks Consensus Estimate for its first-quarter earnings, pegged at 3 cents per share, implies a year-over-year decline of 40% from the prior-year reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for SunPower’s first-quarter sales suggests year-over-year growth of 9.2% from the prior-year reported figure. SPWR has a four-quarter earnings surprise of 8.33%.

Upcoming Releases

Here are two solar players who are yet to release their first-quarter numbers:

ReneSola (SOL - Free Report) : The Zacks Consensus Estimate for ReneSola’s first-quarter earnings is pegged at a loss of 6 cents per share.

The Zacks Consensus Estimate for its first-quarter sales, pegged at $3.9 million, suggests a decline of 82.7% from the prior-year figure. SOL has a four-quarter earnings surprise of 94.17%, on average.

FTC Solar, Inc (FTCI - Free Report) : The Zacks Consensus Estimate for FTC Solar’s first-quarter sales is pegged at $57 million.

The Zacks Consensus Estimate for FTCI’s first-quarter earnings is pegged at a loss of $12 cents per share. FTC Solar has a four-quarter negative earnings surprise of 32.77%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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