Array Technologies Faces EPS Decline and Revenue Dip Ahead

Array Technologies, Inc. is set to report significant declines in EPS and revenue, raising concerns among investors. The company's EPS is projected at $0.13, down 38.1% year-over-year, while revenue is expected to fall 34.94%. Analysts' revisions and current stock trends will be closely watched.

Date: 19-10-2024

AI Rating: 4

Array Technologies, Inc. (ARRY) has experienced fluctuations in its stock price, last closing at $6.81 with a +1.95% change from the previous session. This increase was notable as it outperformed the S&P 500's gain of 0.4%. However, despite this daily gain, over the past month, the stock has only seen an increase of 0.91%, which is overshadowed by the Oils-Energy sector's loss of 7.82% and the S&P 500's gain of 3.76% during the same period.

The upcoming financial results are a major point of interest, particularly with an expected earnings per share (EPS) of $0.13, reflecting a substantial decrease of 38.1% from the prior-year quarter. Additionally, the revenue forecast stands at $227.99 million, indicating a 34.94% decline year-over-year. Such significant drop-offs in both EPS and revenue can lead to negative perceptions among investors and analysts, potentially influencing stock performance negatively.

Looking at the full-year Zacks Consensus Estimates, expected earnings of $0.65 per share and revenue of $942.68 million would show year-over-year decreases of -42.48% and -40.21%, respectively. This reinforces the expectations of a challenging financial climate for Array Technologies.

Investor sentiment may also be affected by the recent downward revision of the Zacks Consensus EPS estimate by 0.92%. Currently rated #3 (Hold) on the Zacks Rank, this rating reflects a neutral stance in light of these figures. Analyst rankings and revisions play a crucial role in stock performance as they often correlate with stock price movements.

On a valuation note, Array Technologies has a Forward P/E ratio of 10.36, which suggests the stock is trading at a discount compared to the industry average of 13.22. Meanwhile, the PEG ratio is set at 1.1, matching the average for the solar industry. However, the relative weakness of the Solar industry, indicated by its Zacks Industry Rank of 152, positions it in the lower tier of overall industries, further complicating the outlook for investors.

Summarizing, the mixed performance metrics coupled with projections of declines in both EPS and revenue present potential challenges. Investors will be looking closely at these figures as they prepare for the company's next financial announcements and market reactions.

Stocks: ARRY