Sunrun Inc. RUN is slated to report third-quarter 2023 results on Nov 1 after the closing bell.
In the last reported quarter, the company witnessed an earnings surprise of 173.53%.
Factors to Note
The increased adoption of storage solutions and the surge in the customer base, along with net subscriber values backed by growing solar demand in recent times, are likely to have boosted Sunrun’s revenues.
Moreover, Sunrun’s exclusive partnership with PG&E Corp., called Peak Power Rewards, is likely to boost customer growth, thereby bolstering the company’s revenues in the third quarter.
However, a reduction in solar energy capacity installation is likely to have been witnessed in the third quarter, mainly due to an expected decline in California order volumes. This is likely to have unfavorably impacted RUN’s top line.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $559.7 million. This suggests a decline of 11.4% from the year-ago reported figure.
From the cost perspective, easing supply-chain conditions and substantial cost reductions across its key hardware components may have contributed to its third-quarter bottom line. The Shift product offering is likely to have aided Sunrun’s overall margins, thus boosting its bottom line.
However, higher interest costs and inflationary pressures may have weighed on its earnings performance in the third quarter. The Zacks Consensus Estimate for RUN’s third-quarter earnings is pegged at a loss of 5 cents per share. This suggests a significant deterioration from the year-ago quarter’s earnings of 96 cents.
Sunrun Inc. Price and EPS Surprise
Sunrun Inc. price-eps-surprise | Sunrun Inc. Quote
What the Zacks Model Unveils
Our proven model predicts 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 the case here.
Earnings ESP: The company has an Earnings ESP of +1,380.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sunrun currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three other companies you may also want to consider from the same sector as these have the right combination of elements to post an earnings beat this season:
ConocoPhillips COPcurrently has an Earnings ESP of +0.50% and a Zacks Rank #2. The Zacks Consensus Estimate for ConocoPhillips’ third-quarter sales is pegged at $14.59 billion.
Estimates for the company’s third-quarter earnings are pegged at $2.04 per share. COP has a four-quarter earnings surprise of 4.47%, on average.
Constellation Energy Corporation CEG currently has an Earnings ESP of +6.05% and a Zacks Rank #1. The Zacks Consensus Estimate for Constellation’s third-quarter sales implies an improvement of 12.5% from the prior-year reported figure.
CEG delivered an earnings surprise of 228.21% in the last reported quarter. Third-quarter earnings estimates, pegged at $1.38 per share, imply a significant improvement from the year-ago quarter’s tally.
DT Midstream, Inc. DTM currently has an Earnings ESP of +2.45% and a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter sales is pegged at $226.8 million, suggesting a decline of 3.5% from the year-ago quarter’s tally.
Estimates for DTM’s third-quarter bottom line are pegged at 90 cents per share. The company delivered an earnings surprise of 5.68% in the last reported quarter.
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.