Financial News
Stem Earnings: What To Look For From STEM
AI-driven clean energy solutions provider Stem (NYSE:STEM) will be reporting earnings tomorrow after market close. Here’s what investors should know.
Stem missed analysts’ revenue expectations by 46.9% last quarter, reporting revenues of $34 million, down 63.4% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations.
Is Stem a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Stem’s revenue to decline 58.9% year on year to $54.92 million, a reversal from the 34.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.20 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 five times over the last two years.
Looking at Stem’s peers in the electrical equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Enphase’s revenues decreased 30.9% year on year, missing analysts’ expectations by 3.3%, and Vicor reported a revenue decline of 13.6%, topping estimates by 9.3%. Enphase traded down 15% following the results while Vicor was up 13.9%.
Read our full analysis of Enphase’s results here and Vicor’s results here.
Investors in the electrical equipment segment have had steady hands going into earnings, with share prices flat over the last month. Stem is up 63.7% during the same time and is heading into earnings with an average analyst price target of $2.10 (compared to the current share price of $0.57).
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