NuScale Power Corporation SMR is scheduled to report first-quarter 2024 results on May 9.
The Zacks Consensus Estimate is pegged at a loss of 21 cents per share. In the last reported quarter, it incurred a loss of 16 cents.
The Zacks Consensus Estimate for revenues is pegged at 3.15 million, suggesting a decline of 42.8% from the prior-year quarter’s levels.
Based in Portland, OR, NuScale specializes in providing innovative advanced nuclear small modular reactor (“SMR”) technology.
In the past year, shares of the company have lost 23.1% compared with sub-industry’s decline of 30.7%.
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Factors Driving Growth
Increasing demand for energy, especially safe and clean energy, owing to higher power usage by data centers and AI, major industrial projects, transportation and utility clients, is likely to have cushioned the company’s performance in the to-be-reported quarter.
NuScale has the first mover advantage in commercial SMR development space as it is the first and only company to have received U.S. Nuclear Regulatory Commission design approval and certification and to have “Long Lead Materials” in production. The efforts to commercialize its SMR technology bode well.
Moreover, collaboration with ENTRA1 Energy is likely to have acted as a tailwind. The collaboration with ENTRA1 encompasses building up of a diverse pipeline worldwide and deploy NuScale SMR-enabled plants globally.
Further, management expects the availability of tax credits for advanced nuclear technology in the Inflation Reduction Act or IRA to boost the adoption of its SMR technology. The company is also focusing on cost discipline. In January 2024, it announced a cost reduction plan which is likely to generate $50-$60 million in annualized savings.
The company generates revenues from sale and delivery of NuScale Power Modules and other equipment along with licensing of the technologies as well as services. Its revenues are derived mostly from services to customers and the licensing of proprietary technology.
Geopolitical instability and global macroeconomic weakness remain headwinds.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for NuScale this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.
NuScale has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Emerson Electric Co EMR has an Earnings ESP of +1.99% and currently carries a Zacks Rank of 2. EMR is set to announce quarterly figures on May 8.
The Zacks Consensus Estimate for EMR’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $4.29 billion, respectively. Shares of EMR have gained 27.1% in the past year.
Gray Television, Inc GTN has an Earnings ESP of +9.26% and presently carries a Zacks Rank #2. GTN is slated to release quarterly numbers on May 7.
The Zacks Consensus Estimate for GTN’s to-be-reported quarter’s earnings and revenues is pegged at 54 cents per share and $818 million, respectively.
The GEO Group, Inc GEO has an Earnings ESP of +3.90% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
GEO is scheduled to report quarterly earnings on May 7. The Zacks Consensus Estimate for GEO’s to-be-reported quarter’s earnings and revenues is pegged at 19 cents per share and $603.8 million, respectively. Shares of GEO have surged 77.6% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
