) is set to report fourth-quarter 2013 results on Feb 19. Last
quarter, the company posted a positive earnings surprise of
100.0%. Let us see how things are shaping up for this
Growth Factors This Past Quarter
Although SunEdison delivered better-than-expected third-quarter
2013 results, its year-over-year comparisons in every operational
metric were down. Solar systems sales were also lower than
expected. The fourth-quarter guidance was cautious and fiscal
2013 estimates were lowered.
We believe SunEdison will benefit from the rise in demand for
solar energy and the semiconductor business IPO that should
further enable it to concentrate on its core competencies.
Moreover, its recent partnerships and cost reduction initiatives
are expected to enhance SunEdison's margins. In addition,
the company has strengthened its balance sheet and also minimized
its annual interest expense that will result in net savings of
approximately $35.0 million per year.
Nonetheless, competition from
First Solar Inc.
) is a concern.
Our proven model does not conclusively show that SunEdison will
beat earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 12 cents. Hence, the difference is 0.00%.
SunEdison's Zacks Rank #3 (Hold), when combined with a 0.00% ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here is another company you may want to consider as our model
shows that it has the right combination of elements to post an
earnings beat this quarter:
) has an Earnings ESP of +1.18% and holds a Zacks Rank #2 (Buy).
Hewlett-Packard will report first-quarter 2014 results on Feb 20,
FIRST SOLAR INC (FSLR): Free Stock Analysis
HEWLETT PACKARD (HPQ): Free Stock Analysis
SUNPOWER CORP-A (SPWR): Free Stock Analysis
SUNEDISON INC (SUNE): Free Stock Analysis
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