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

Sunrun Inc. RUN is slated to report fourth-quarter 2021 results on Feb 17 after the closing bell.

In the last reported quarter, the company witnessed an earnings surprise of 120.00%. However, in the trailing four quarters, Sunrun delivered a negative earnings surprise of 233.10%, on average.

Factors to Note

In the past few quarters, the company has been witnessing strong volume growth momentum in installations in the new homes business, the channel partner business and the direct business, thus adding impetus to the overall growth across all its business channels. This is expected to have continued to positively impact the company’s top line in the fourth quarter as well.

Moreover, the strong growth in battery installations is anticipated to have favorably impacted RUN’s top line in the soon-to-be-reported quarter. Furthermore, the integration of Vivint Solar is also likely to have favorably contributed to its fourth-quarter revenues.

Considering all these factors, one remains optimistic about the company’s top line in the fourth quarter.

Also, the partnership with Ford has been fetching remarkable market share gains for Sunrun, with the latter having resumed the rollout of the all-electric F-150 Lightning truck beginning in May. This is likely to have positively impacted the company’s performancein the to-be-reported quarter.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $392 million, suggesting growth of 22.4% from the year-ago reported figure.

From the cost perspective, higher logistics and material costs may have dampened Sunrun’s earnings in the soon-to-be-reported quarter. However, modest price increases implemented by the company may have offset the adverse cost impact on its fourth-quarter earnings.

Also, incremental margins from the Electric Vehicle business must have boosted earnings in the to-be-reported quarter.

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

The Zacks Consensus Estimate for RUN’s fourth-quarter earnings is pegged at 10 cents per share,suggesting significant growth of 266.7% from the year-ago quarter.

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 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 as you will see.

The company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are two Solar players you may want to consider as they have the right combination of elements to post an earnings beat this season:

FTC Solar, Inc FTCI has an Earnings ESP of +19.36% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

FTC Solar boasts a long-term earnings growth rate of 40%. The Zacks Consensus Estimate for FTCI’s fourth-quarter sales is pegged at $75.9 million.

Sunnova Energy International NOVA has an Earnings ESP of +0.56% and a Zacks Rank #3. Sunnova has a four-quarter average negative earnings surprise of 2.24%.

The Zacks Consensus Estimate for NOVA’s fourth-quarter sales and loss is pegged at $64.7 million and 37 cents per share, respectively.

Upcoming Releases

Here is one solar player who is yet to release fourth-quarter numbers:

First Solar FSLR has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $1.07, implies a year-over-year slip of 0.9%.

First Solar boasts a long-term earnings growth rate of 7.4%. FSLR has a four-quarter earnings surprise of 19.01%.

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


5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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First Solar, Inc. (FSLR): Free Stock Analysis Report
 
Sunrun Inc. (RUN): Free Stock Analysis Report
 
Sunnova Energy International Inc. (NOVA): Free Stock Analysis Report
 
FTC Solar, Inc. (FTCI): Free Stock Analysis Report
 
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