Azure Power (AZRE), delivered revenue and earnings surprises of 533.33% for its quarter ending June 2021. Are the numbers correct?
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Azure Power (AZRE), which posted quarterly earnings of $0.19 per stock beat the Zacks Consensus Estimate at $0.03 per share. This is compared to the earnings of $0.07 per shares a year earlier. These numbers are adjusted to account for non-recurring expenses.
The earnings surprise for this quarter is 533.33%. It was anticipated that the solar power producer would report earnings of $0.06 per shares quarter back, but it produced an unexpected loss of $0.06 per share.
The company’s consensus EPS estimates have been exceeded twice in the past four quarters.
Azure Power, which is part of the Zacks Solar sector, reported revenues in the third quarter ending June 2021 at $59.7million. This was more than the Zacks Consensus Estimate (3.11%). This is compared to the $52.2 million in revenues a year ago. Over the past four quarters, consensus revenue estimates have been exceeded twice by the company.
Based on recently released numbers, the sustainability of the stock’s price movement and future earnings outlook will largely depend on management’s comments on the earnings conference.
Azure Power shares lost 52.5% in the first year, compared to the 20.1% gain by the S&P 500.
Azure Power: What Next?
Although Azure Power’s performance has been below the market this year so far, investors are asking themselves: What’s the next step for the stock?
Although there aren’t easy answers, investors can use the earnings outlook to help them make informed decisions. This includes current expectations of earnings for the next quarter, as well as how they have changed in recent months.
Research shows that there is a strong relationship between stock movement and earnings revision trends. These revisions can be tracked by investors or they can rely on a proven rating tool such as the Zacks Rank. This has a strong track record in harnessing earnings estimate revisions’ power.
The trend in estimate revisions for Azure Power before this earnings report was mixed. The company just released its earnings report and the direction of the estimate revisions may change, but the current Zacks rank for Azure Power is #3 (Hold). The shares should perform well in the future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the days to come, it will be fascinating to observe how the estimates for the next quarters and the current fiscal year evolve. Current consensus EPS estimates are -$0.17 for $49 Million in revenue for the next quarter, and -$0.02 for $251.7 Million in revenues in the current fiscal.
The outlook for an industry’s performance can also have an impact on stock performance. Investors need to be aware of this fact. Solar currently ranks in the bottom 7% among the 250+ Zacks industry ranked. Research shows that top 50 percent of Zacks-ranked Industries outperforms the bottom half by more than two to one.
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Publié at Tue 31 August 2021, 00:20.49 +0000