NASDAQ$ARRY

Array Technologies Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Array Technologies reported record revenue and gross margin improvement for the fourth consecutive quarter.

Array Technologies reported record revenue of $515 million, a 173% increase year-over-year. The company's gross margin improved to 15.6%, and they generated $102 million in free cash flow, which was used to fully pay down the revolving credit facility.

  • Revenue increased 173% to $515.0 million compared to the prior year.
  • Net income to common stockholders was $28.6 million compared to a net loss of $33.0 million during the same period in the prior year.
  • Adjusted EBITDA increased to $55.4 million, compared to a $3.9 million loss for the prior-year period.
  • Total executed contracts and awarded orders at September 30, 2022 were $1.8 billion, with $1.4 billion from Array Legacy Operations and $0.4 billion from STI Norland.

Headline financials

Total Revenue

$515M

Previous: $192M+168.1%
EPS (adj)

$0.18

Previous: -$0.07+357.1%
Gross Margin

15.6%

No prior period
Adjusted EBITDA

$55.4M

No prior period
Orderbook

$1.8B

Previous: $1.01B+79.1%
Capital Expenditures

-$6.69M

Previous: -$2.25M-197.1%
Free Cash Flow

$34.1M

Previous: -$27.8M+222.8%
Net Income

$40.8M

Previous: -$25.6M+259.8%
Operating Income

$18.5M

Previous: -$16.1M+214.8%
Gross Profit

$80.2M

Previous: $9.28M+764.6%
Cash & Equivalents

$62.8M

Previous: $116M-46.1%
Total Assets

$1.68B

Previous: $777M+116.6%
Stock-Based Comp

$4.21M

Previous: $2.24M+87.8%

Revenue & EPS history

Array Technologies · Revenue · Quarterly

$515M

Q3 2022+168.1%vs Q3 2021
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Forward guidance

The Company updates it expectations for the year ending December 31, 2022.

Tailwinds

  • Revenue to be in the range of $1.50 billion to $1.60 billion
  • Adjusted EBITDA to be in the range of $122.0 million to $132.0 million
  • Adjusted net income per share to be in the range of $0.32 to $0.37

Headwinds

  • The implementation of the IRA may not deliver as much growth as we are anticipating.
  • There is still much that is unknown about the final form of the Inflation Reduction Act.
  • It is challenging to quantify specific revenue growth and the impacts to our margins at this time.
  • The company will continue to actively participate in the processes established by the various governmental agencies tasked to implement it.
  • The company will work with customers and suppliers to ensure the best outcome for the solar industry in general and Array specifically.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-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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