NASDAQ$ARRY

Array Technologies Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Array Technologies reported financial results for the third quarter of 2020.

Array Technologies reported revenue of $139.5 million and a net loss per share of ($0.06) for the third quarter of 2020. The company's adjusted EBITDA was $16.6 million and adjusted net income per share was $0.07. They had $703 million of executed contracts and awarded orders at the end of the quarter, representing a 31% increase versus the same time last year.

  • Revenue for the third quarter of 2020 was $139.5 million.
  • Basic and diluted net loss per share was ($0.06).
  • Adjusted EBITDA was $16.6 million.
  • Adjusted basic and diluted net income per share was $0.07.

Headline financials

Total Revenue

$139M

Previous: $64.7M+115.6%
EPS (adj)

$0.07

Previous: -$0.17+141.2%
Orderbook

$703M

Previous: $537M+31.0%
Capital Expenditures

-$610K

No prior period
Free Cash Flow

-$7.84M

No prior period
Net Income

-$7.23M

No prior period
Operating Income

-$5.11M

No prior period
Gross Profit

$26.7M

No prior period
Cash & Equivalents

$27.1M

No prior period
Total Assets

$552M

No prior period
Stock-Based Comp

$853K

No prior period

Revenue & EPS history

Array Technologies · Revenue · Quarterly

$139M

Q3 2020+115.6%vs Q3 2019
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Forward guidance

For the full year 2020 ending December 31, 2020, the Company expects: Revenues to be in the range of $845 million to $865 million, Adjusted EBITDA to be in the range of $156 million to $160 million and Adjusted net income per share to be in the range of $0.82 to $0.86.

Tailwinds

  • Demand for trackers is growing faster than the overall market for solar.
  • Customers are converting from fixed-tilt to trackers.
  • Customers are increasingly recognizing the superior reliability and durability of Array Technologies' tracker system.
  • Strong order book provides confidence for substantial growth in 2021.
  • The drive to decarbonize energy is only accelerating and Array Technologies is a direct beneficiary of that transition.

Headwinds

  • Comparisons of year-over-year results for the third quarter are less meaningful than comparisons of year-over-year results for the first nine months because of the change in the distribution of quarterly revenues brought about by the start of the ITC step-downs this year.
  • The step-downs in the ITC that began this year incentivize customers to place the majority of their orders in the second half of the year and take delivery in the first half of the following year.
  • The company will not be providing quarterly guidance in future periods.
  • Uncertainties and inherent difficulty predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized.
  • The COVID-19 pandemic on our business and the businesses of our suppliers and customers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports

Historical avg

-0.3%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+3.3%

Avg return

30 days after

63%

15 / 24 earnings

Positive

+29.5%

Q3 2021

Best reaction

-45.9%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+6.5%-1.2%
Q4 2025-33.9%-31.8%-33.4%
Q3 2025+2.0%+0.5%-5.4%
Q1 2025+3.9%+20.7%+50.1%
Q3 2024+1.7%+10.9%-5.4%
Q2 2024-18.0%-19.1%-26.3%
Q1 2024+2.0%+0.9%+7.4%
Q4 2023+5.2%+5.5%+11.3%
Q3 2023-16.6%-22.2%-11.8%
Q2 2023+25.0%+32.9%+33.9%
Q1 2023-0.1%+17.7%+22.2%
Q4 2022+13.9%+7.2%+21.7%
Q3 2022+20.9%+29.0%+32.0%
Q2 2022+26.2%+24.7%+14.1%
Q1 2022-12.2%-3.1%+84.4%
Q4 2021-7.5%-22.1%-23.2%
Q3 2021+29.5%+30.0%-15.8%
Q2 2021+14.0%+13.0%+16.1%
Q1 2020-45.9%-42.8%-34.4%
Q1 2021-45.9%-42.8%-34.4%
Q2 2020+0.1%+0.9%-14.9%
Q4 2020+0.7%+3.8%-9.2%
Q4 2019+4.1%+17.2%+5.3%
Q3 2020+24.7%+10.5%-5.1%
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015

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