Array Technologies Soars on Strong Outlook After Q4 Beat
2022.04.06 17:12
By Dhirendra Tripathi
Investing.com — Array Technologies (NASDAQ:ARRY) stock surged 14% Wednesday after the solar tracker technology provider issued an upbeat outlook following a robust fourth quarter.
The company is projecting its 2022 revenue to be higher by over 85% at the midpoint of its guidance range of $1.45 billion-$1.75 billion. It expects its legacy business alone to grow at around 40% at mid-point, despite module challenges and supply chain disruptions.
The company’s acquisition of Soluciones Técnicas Integrales Norland, one of Europe’s leading manufacturers of solar trackers, was completed in January.
Array’s estimate-beating performance came in even as it ran into higher-than-expected material costs in the quarter due to changes in its supply chain plan to maintain customer delivery schedules.
The company’s executed contracts and awarded orders at the close of the year totaled $1.8 billion, a new record.
Revenue in the fourth quarter rose 22% to $220 million, primarily driven by continued strong demand for its solar solutions. Margins eroded due to higher raw material and freight costs.
The company’s adjusted EBITDA in the fourth quarter was impacted by the mix of deliveries which skewed heavier on the legacy, lower margin projects than it had forecasted.
Adjusted net loss in the quarter was $7.8 million compared to adjusted net income of $10.6 million in the same period a year ago.
