- Aprile 15, 2022
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
Next up is Array Technologies, and for this one we’ll switch gears. Specifically, we’ll look at the green economy, where Array produces solar tracking tech for large-scale, utility-grade solar energy projects. This is a vital niche in the solar industry; tracking tech allows the panels to move to the optimal position in relation to the sun, for maximal energy production. Array offers two sets of products, the DuraTrack and the SmarTrack.
The company’s revenues are showing growth recently. The company reported a top line of $219.9 million in 4Q21, up 22% year-over-year – and the second-highest quarterly revenue result since the company went public in October of 2020. Looking at earnings, Array posted net losses in Q3 and Q4 – but for 2021 as a whole, it recorded a net EPS profit of 7 cents. But while that’s still a profit, it compares poorly to the 93 cents per share in the 2020 report.
Array does have the financial resources to weather a period of lower earnings. The company’s cash position improved from 2020 to 2021; it ended ’20 with $108 million in cash on hand, which grew to more than $367 million in liquid assets by the end of 2021.
JPMorgan analyst Mark Strouse, rated 5-stars at TipRanks, takes note of Array’s growth potential, writing: “Guidance assumes ~40% organic growth, approximately aligning with our expectations. The revenue upside is primarily driven by the STI business, where management notes an acceleration in demand, particularly in W. Europe even before the energy price spikes experienced over the past few weeks. The guide assumes a lower than historical average conversion of backlog to deliveries, baking in likely project delays that are occurring across the utility-scale solar industry, though does not assume any potential disruption from the pending AD/CVD investigation. We are increasing our FY22 estimates accordingly…”
To this end, Strouse rates ARRY an Overweight (i.e. Buy) along with a $33 price target that points toward a robust 238% upside for the coming year. (To watch Strouse’s track record
Among Strouse’s colleagues, rating wise, the bulls are slightly in front. ARRY’s Moderate Buy consensus rating is based on 6 Buys and 4 Holds. However, the bulls are out in full force where the average price target is concerned; At $19.90, the analysts expect the stock to change hands for a 91% premium over the next 12 months.
