Array Technologies $ARRY Downtrend Channel Breakout Run, Dark Pool Trade

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Array Technologies $ARRY stock did a downtrend channel breakout on November 23, 2022, after forming a Three Outside Up candlestick pattern (shown in red box in the chart below). The stock is in a technical strong uptrend. Long-term indicators suggest a continuation of the uptrend. The stock is approaching overbought territory so profit taking or even a trend reversal is possible.

Array Technologies stock chart on November 23 2022 with a downtrend channel breakout chart pattern and positive MACD with positive money flow
Array Technologies stock chart on November 23 2022 with a downtrend channel breakout chart pattern and positive MACD with positive money flow

Dark Pool Trades In Array Technologies $ARRY Stock

Two dark pool trades occurred in Array Technologies $ARRY stock on November 18, 2022. The dark pool trades were valued at $22 million and $11 million. We think the dark pool trades were buy orders because Array Technologies stock rose following the trades coming off the dark pools.

Array Technologies stock chart on November 23 2022 with dark pool trades shown with orange bar
Array Technologies stock chart on November 23 2022 with dark pool trades shown with orange bar

Array Technologies Reports Financial Results for the Third Quarter 2022

On November 8, 2022, Array Technologies announced financial results for its third quarter ended September 30, 2022. Array Technologies reported incredible EPS and revenue beats. The company reported Q3 adjusted EPS of 18c versus the consensus estimate of 10c. The company also reported Q3 revenue of $515M versus the consensus estimate of $399.35M. Array Technologies raised forward guidance to FY22 adjusted EPS of 32c-37c versus the consensus estimate of 30c. The company guided FY22 revenue to $1.5B-$1.6B versus the consensus estimate of $1.48B.

“In the third quarter we had record setting revenue of $515 million which represented an increase of 173% from the prior year and an organic increase of 112%. Adjusted EBITDA for the quarter was $55.4 million which was a $59.3 million improvement from the prior year and is reflective of not only our volume growth, but also our continued gross margin expansion. Gross margin for the quarter was 15.6% which is comprised of a 16.0% gross margin in our legacy Array segment and 14.2% in our STI segment and marks our fourth consecutive quarter of margin improvement,” said Kevin Hostetler, Chief Executive Officer.
“Additionally, as we had previously forecasted, during the quarter we produced $102.0 million of free cash flow which allowed us to fully pay down our revolving credit facility. At quarter-end we had access to $166.6 million of the revolving facility in addition to $62.8 million of cash on hand for total liquidity of $229 million, excluding the $100 million of additional preferred share availability. This significant improvement from the prior quarter is another key step in solidifying our balance sheet as we prepare for continued growth. Overall, our performance in the third quarter demonstrates not only the strength of customer demand for our product and service offerings, but also the continued effects of our focused efforts to improve our operational execution in all aspects of the business.”

Array Technologies price target raised at Northland

As a result of the strong Q3 beat, which included revenue exceeding consensus by nearly 30%, Northland analyst Donovan Schafer increased the price target on Array Technologies to $30 from $26 on November 9, 2022, and kept an Outperform rating on the stock. While Array’s ability to return to gross margins of around 20 percent was questioned by bears, Schafer informs investors in a post-earnings research note that margins showed steady sequential improvement and this appears to be exactly what is happening.

Array Technologies 30 Years in a Day

30 Years in a Day

Array Technologies to Supply Solar Trackers for Over 750 MWdc Solar Project in Ohio

On November 7, 2022, Array Technologies received a contract to provide EDF Renewables North America, one of the biggest developers of renewable energy in North America, with its DuraTrack solar trackers.

Array will provide its DuraTrack solar trackers for a nearly 4,500-acre project in Ohio with a capacity of over 750 megawatts. Over 1.4 million modules will be installed in the project’s over 13,000 tracker rows. They anticipated the project to be among the biggest solar projects in the US, and it will generate enough clean energy each year to power 116,000 typical Ohio homes.

Array will start delivering trackers in January 2023, and we expect the project to be operational in 2024. Blattner Energy, a company that belongs to the Quanta Services group, is in charge of the engineering, procurement, and construction. Blattner is a multifaceted renewable energy engineering contractor that offers innovative solutions and teamwork across the country. EDF Renewables, an independent power producer, is developing the project.

“By winning this project, Array is further solidifying its position as a leader in the utility-scale solar industry and demonstrating our ability to consistently deliver quality products on time for our customers,” said Kevin Hostetler, CEO of Array Technologies. “This project is a win-win-win for the county in Ohio, delivering clean energy into the local power grid, providing hundreds of new construction jobs, and generating a revenue stream from the lease agreements and tax revenue all while boosting economic development in the area and serving as a STEM resource for students interested in science, sustainability and environmental learning.”

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