Stock Story -
AI-driven clean energy solutions provider Stem (NYSE:STEM) will be announcing earnings results tomorrow after the bell. Here's what to look for.
Stem missed analysts' revenue expectations by 59.1% last quarter, reporting revenues of $25.47 million, down 62.2% year on year. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' earnings estimates.
Is Stem a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Stem's revenue to decline 31.1% year on year to $64.06 million, a reversal from the 38.8% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stem has missed Wall Street's revenue estimates four times over the last two years.
Looking at Stem's peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Nextracker delivered year-on-year revenue growth of 50.1%, beating analysts' expectations by 16.8%, and Generac reported flat revenue, in line with consensus estimates. Nextracker traded down 10.3% following the results while Generac was also down 6.4%.
Read the full analysis of Nextracker's and Generac's results on StockStory.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 2.8% on average over the last month. Stem is down 6.1% during the same time and is heading into earnings with an average analyst price target of $3.5 (compared to the current share price of $1.07).
