What's In Store For Azure Power Global (AZRE) Q2 Earnings?
Zacks Investment Research | Nov 07, 2019 09:46PM ET
Azure Power Global Ltd. (NYSE: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 Zacks Investment Research
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