Electricity storage and software provider Fluence (NASDAQ: FLNC) will be reporting results this Wednesday after market hours. Here’s what to look for.
Fluence Energy missed analysts’ revenue expectations by 24.8% last quarter, reporting revenues of $1.04 billion, down 15.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year EBITDA guidance missing analysts’ expectations significantly. It reported 22,000 deployed megawatts for digital contracts, up 20.2% year on year.
Is Fluence Energy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Fluence Energy’s revenue to grow 156% year on year to $478.4 million, a reversal from the 48.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.17 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Fluence Energy has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Fluence Energy’s peers in the electrical equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Nextpower delivered year-on-year revenue growth of 33.9%, beating analysts’ expectations by 11.5%, and LSI reported flat revenue, topping estimates by 4.9%. Nextpower traded up 13.3% following the results while LSI was also up 8.6%.
Read our full analysis of Nextpower’s results here and LSI’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 7.1% on average over the last month. Fluence Energy is up 38.7% during the same time and is heading into earnings with an average analyst price target of $19 (compared to the current share price of $30.57).
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