ReNew Energy Global PLC (RNW) reported break-even quarterly earnings per share, falling short of the Zacks Consensus Estimate of $0.08. This result contrasts with the $0.09 per share earned in the same period last year. These figures are adjusted for non-recurring items. This translates to an earnings surprise of -100%. In the previous quarter, the company had pleasantly surprised analysts by generating earnings of $0.02 per share, exceeding the expected loss of $0.06, delivering a 133.33% surprise. Over the past four quarters, ReNew Energy Global has exceeded consensus EPS estimates three times.
ReNew Energy Global, a member of the Zacks Alternative Energy – Other industry, reported revenues of $299 million for the quarter ending June 2024, missing the Zacks Consensus Estimate by 13.23%. This compares to year-ago revenues of $300 million. The company has outperformed consensus revenue estimates three times over the last four quarters. The sustainability of the stock’s immediate price movement, based on the recently released numbers and future earnings expectations, will largely depend on management’s commentary during the earnings call. ReNew Energy Global shares have faced a decline of approximately 23.8% since the beginning of the year, in contrast to the S&P 500’s gain of 14.4%.
While ReNew Energy Global has underperformed the market in 2024, investors are naturally curious about the stock’s future trajectory. There are no easy answers to this question, but a reliable indicator to consider is the company’s earnings outlook. This includes current consensus earnings expectations for the upcoming quarters, and how these expectations have evolved recently. Empirical research demonstrates a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions independently or rely on a well-established rating tool like the Zacks Rank, which has a proven track record of utilizing the power of earnings estimate revisions.
Prior to this earnings release, the trend in estimate revisions for ReNew Energy Global was mixed. While the magnitude and direction of estimate revisions could shift following the company’s recently released earnings report, the current status translates to a Zacks Rank #3 (Hold) for the stock. Therefore, the shares are expected to perform in line with the market in the near future. It will be interesting to observe how estimates for the coming quarters and the current fiscal year evolve in the coming days. The current consensus EPS estimate is $0.14 on $382 million in revenues for the next quarter and $0.13 on $1.33 billion in revenues for the current fiscal year.
Investors should acknowledge that the outlook for the industry can have a significant impact on the stock’s performance. In terms of the Zacks Industry Rank, Alternative Energy – Other currently sits in the bottom 32% of the 250+ Zacks industries. Our research indicates that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another company from the broader Zacks Oils-Energy sector, Matrix Service (MTRX), has yet to report results for the quarter ending June 2024. This energy services company is anticipated to post a quarterly loss of $0.21 per share in its upcoming report, representing a year-over-year change of -90.9%. The consensus EPS estimate for the quarter has remained unchanged over the past 30 days. Matrix Service’s revenues are projected to reach $215.61 million, up 4.7% from the corresponding period last year.
