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What's in Store for Azure Power Global (AZRE) Q2 Earnings?

Azure Power Global Ltd. AZRE second-quarter fiscal 2020 results are expected to reflect benefits from solid growth opportunities in the Indian solar market.

Over the trailing four quarters, Azure Power’s earnings outperformed the Zacks Consensus Estimate twice for as many misses, the average positive beat being 37.64%.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

For the past few quarters, the company has been picking the best projects in India, given the plethora of growth opportunities in the Indian solar market. The company has commissioned 280 megawatts of solar capacity, since the beginning of this year, which keeps increasing.

We anticipate the company’s soon-to-be-reported results to duly reflect these positives. In line with this, the Zacks Consensus Estimate for the fiscal second-quarter revenues is pegged at $43.6 million, suggesting 42.1% year-over-year growth.

The company continues to benefit from economies of scale, which has been lowering its operating as well as interest costs. Moreover, Azure Power has lowered its operations and material costs per megawatt by nearly 50% over the past three years. The company is expected to have benefited from the same in the quarter under review.

The Zacks Consensus Estimate for the fiscal second-quarter earnings is pegged at 4 cents, indicating a notable improvement against a loss of 3 cents reported in the year-ago quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Azure Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Azure Power has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Azure Power Global Ltd. Price and EPS Surprise

Azure Power Global Ltd. Price and EPS Surprise

Azure Power Global Ltd. price-eps-surprise | Azure Power Global Ltd. Quote

Stocks to Consider

Investors may consider the following companies from the energy space that have the right combination of elements to beat earnings estimates in the quarter to be reported:

Charah Solutions Inc. CHRA is scheduled to release third-quarter 2019 results on Nov 12. It has an Earnings ESP of +6.25% and carries a Zacks Rank #3.

Northern Oil and Gas Inc. NOG is slated to report quarterly numbers on Nov 12. It has an Earnings ESP of +3.64% and a Zacks Rank of 3.

Spire Inc. SR is set to release fourth-quarter fiscal 2019 results on Nov 20. It has an Earnings ESP of +2.55% and holds a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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