Solar tracking systems and related products manufacturer and supplier Array Technologies, Inc. (ARRY) surpassed the consensus revenue and EPS estimates for the third quarter of fiscal 2022 by 29.8% and 77.4%, respectively.
The company reported revenue of $515 million, compared to $188.70 million in the prior-year period. The revenue growth was driven by the acquisition of STI Norland and strong organic growth within its legacy Array business.
The company’s net income came in at $28 million compared to an adjusted net loss of $11.80 million in the year-ago quarter. Net income per share came in at $0.18 versus an adjusted net loss per share of $0.09 a year ago.
Additionally, ARRY produced $102 million of free cash flow during the quarter, allowing the company to pay down its revolving credit facility fully. At quarter-end, the company had access to $166.6 million of the revolving facility and $62.8 million of cash for total liquidity of $229 million, excluding the additional preferred share availability of $100 million.
“Overall, our performance in the third quarter demonstrates not only the strength of customer demand for our product and service offerings but also the continued effects of our focused efforts to improve our operational execution in all aspects of the business,” said ARRY’s CEO, Kevin Hostetler.
On August 16, 2022, the Inflation Reduction Act was passed by Congress and signed into law by President Joe Biden. It represents a significant investment by the federal government in renewable energy and related technologies. It includes tax incentives that will spur domestic solar manufacturing.
The IRA is expected to allow the U.S. solar market to grow 40% through 2027, equal to 62 gigawatts (GW) of additional solar capacity, according to forecasts in the U.S. Solar Market Insight Q3 2022 report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, a Verisk business.
“This report provides an early look at how the Inflation Reduction Act will transform America’s energy economy, and the forecasts show a wave of clean energy and manufacturing investments that will uplift communities nationwide,” said SEIA President and CEO Abigail Ross Hopper.
Loading ...Shares of ARRY have gained 23.6% over the past month and 94.9% over the past six months to close the last trading session at $21.61. The stock is currently trading above its 50-day and 200-day moving averages of $17.74 and $13.97, respectively. Continue reading "1 Solar Stock to Brighten Your Portfolio"
