Array Technologies Up 20% Despite Q3 Miss; Announced STI Norland Acquisition
Array Technologies, Inc. (NASDAQ:ARRY) shares closed 20.08% higher on Friday, despite the company’s reported Q3 miss. The EPS and revenues came in at ($0.07) and $192.1 million, below the consensus estimates of ($0.05) and $203.5 million, respectively. However, the company announced a significant acquisition in STI Norland.
Analysts at Oppenheimer view the acquisition as sound from an industrial logic perspective, diversifying the company's geographic footprint and supplementing its product offerings. The analysts also noted that the company continues to book significant volumes of business benefiting from its leading product portfolio and strong underlying demand. The analysts view the company's margin improvement plan as reasonable, but given the volatility in basic material availability and labor shortages across numerous segments of the economy, they are taking a conservative view of margin recovery modestly below management expectations.
| Symbol | Price | %chg |
|---|---|---|
| WAAREEENER.NS | 2609.9 | 0 |
| PREMIERENE.NS | 1147 | -0.77 |
| 322000.KS | 25550 | 0 |
| JSKY.JK | 52 | 0 |
Array Technologies, Inc. (NASDAQ: ARRY) Downgraded by Guggenheim Amidst Strong Financial Performance
- Guggenheim downgraded Array Technologies, Inc. (NASDAQ: ARRY) from "Buy" to "Neutral" following the election outcome.
- ARRY reported quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.14 per share.
- The company achieved a revenue of $231.4 million and a gross margin of 33.8%, with an adjusted gross margin of 35.4%.
Array Technologies, Inc. (NASDAQ: ARRY) is a prominent player in the solar energy sector, specializing in utility-scale solar tracking systems. On November 7, 2024, Guggenheim downgraded ARRY from a "Buy" to a "Neutral" rating, with the stock priced at $7.47. This downgrade was part of a broader reassessment of clean energy companies following the election outcome.
Despite the downgrade, ARRY's recent financial performance shows resilience. The company reported quarterly earnings of $0.17 per share, surpassing the Zacks Consensus Estimate of $0.14 per share. However, this is a decrease from the previous year's $0.21 per share, indicating a year-over-year decline in earnings. This performance underscores ARRY's ability to exceed market expectations.
In the third quarter of 2024, ARRY achieved a revenue of $231.4 million and a gross margin of 33.8%, with an adjusted gross margin of 35.4%. Despite these strong figures, the company reported a net loss to common shareholders of $155.4 million. This loss includes a significant $162 million non-cash goodwill impairment charge related to the 2022 acquisition of STI.
The stock is currently priced at $6.20, reflecting a 4.38% increase with a price change of $0.26. It has fluctuated between $5.95 and $6.37 today. Over the past year, ARRY's stock has seen a high of $20.15 and a low of $5.56. The company's market capitalization is approximately $942 million, with a trading volume of 19.2 million shares.
Array Technologies Reiterated With Buy Rating at BofA Securities
Bank of America analysts reaffirmed their Buy rating on Array Technologies (NASDAQ:ARRY), lowering their price target from $23 to $21. The analysts cited ongoing support for the company despite potential near-term volatility and customer delays impacting the stock.
They noted the company faces industry challenges like high rates and inflation, affecting smaller developers. However, no project cancellations have been reported, and Array expects around $300 million in high-likelihood orders driven by the Inflation Reduction Act. Despite year-to-date challenges, the bank remains optimistic about Array Technologies' market leadership and valuation.
