Array Technologies Inc Down 23.11% To $14.66 After Earnings Beat

Wednesday, November 8, 2023 - Array Technologies Inc (ARRY) reported upside earnings and downside revenues.

Array Technologies Inc's earnings came in at an EPS of $0.21 per share, 75.00% higher than estimates for an EPS of $0.12 per share. The firm's earnings are up 17% since reporting $0.18 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $371.1 million. The Technology company missed on those expectations for its third quarter with revenue of $350.4 million, a negative revenue surprise of $20.7 million (6%). The firm managed negative 32% growth year-over-year due to Array Technologies Inc reporting quarterly revenue of $515 million in its year-ago quarter. Array Technologies Inc achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is down 23.11% to $14.66 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Array Technologies Inc a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 48. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Array Technologies Inc manufacturer of ground-mounting systems used in solar energy projects. The company's product is an integrated system of steel supports, electric motors, gearboxes and electronic controllers referred to as a single-axis tracker that move solar panels throughout the day to maintain an optimal orientation to the sun, which increases their energy production. Its operations are in the United States, Australia, and Rest of the World with the United States deriving the majority of the revenue.