Altus Power (AMPS) Anticipates Earnings Decline in Upcoming Quarterly Report

Altus Power, Inc. (AMPS), a company operating in the energy sector, is bracing for its upcoming financial results, expected to be made public on May 9, 2024. There is a general expectancy of a downturn in earnings despite projected higher revenues for the quarter that ended in March 2024. This expectation is based on consensus estimates from financial analysts who closely monitor the company's performance.

Earnings Estimates Overview

As per the current consensus among analysts, Altus Power is poised to declare a quarterly loss of $0.08 per share, a significant year-over-year decrease of 60%. Despite the anticipated dip in earnings, revenue forecasts are more optimistic, with a projection of $39.42 million, which would constitute a 34.2% increase compared to the same period last year.

Trends and Revisions

Analysts have adjusted their earnings per share (EPS) estimates downward by a striking 133.33% within the past 30 days. This consensus EPS estimate revision may indicate a shift in analysts' views on the company's financial health and future prospects. However, it's important to note that such estimate revisions might not always be mirrored in the aggregate change.

Earnings Predictions and Insights

There are techniques to gauge potential earnings outcomes. One such method is the Zacks Earnings ESP (Expected Surprise Prediction), which compares the Most Accurate Estimate with the Zacks Consensus Estimate. A positive Earnings ESP typically suggests a higher likelihood of an earnings beat, while a negative one is not definitively indicative of a shortfall. However, it is challenging to predict an earnings beat with confidence for stocks with negative ESP readings and lower Zacks Ranks.

Altus Power's Standing

For Altus Power, the Most Accurate Estimate is beneath the consensus, implying that analysts have turned more pessimistic on the company's earnings outlook. The Earnings ESP stands at -9.09%, and Altus Power holds a Zacks Rank #4, which together, do not lend confidence in predicting an earnings beat.

Considering Historical Performance

In history, one can find cues about future performance; therefore, looking at Altus Power's past earnings surprise track record could be telling. Unfortunately, the company has not managed to exceed consensus EPS estimates in any of the last four quarters. In the latest reported quarter, the company's actual loss per share doubled the expected figure, resulting in a -100% surprise.

Conclusion

An upcoming earnings report doesn't solely drive stock price movement; many factors can play a role. While stocks may move according to earnings outcomes, different dynamics may help or hinder stock price performance post-announcement. Nevertheless, some investors look for stocks likely to beat earnings expectations, which could improve the chances of investment success. Therefore, it is always beneficial to consider a combination of factors including Earnings ESP and Zacks Rank before making investment decisions ahead of earnings releases.

Peer Analysis

In the context of the industry, Excelerate Energy (EE), another player in the alternative energy sector, is projected to post a decreased year-over-year earnings of $0.21 per share. Anticipated quarterly revenues are looking up with an expectation of a 20.9% year-over-year increase. With earnings estimate revisions tilting upward and a high Earnings ESP, Excelerate Energy, holding a Zacks Rank #1, appears more likely to surpass consensus EPS estimates.

Altus, Earnings, Estimates