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ARRY Nasdaq· Array Technologies
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ARRY Nasdaq· Array Technologies
Earnings report Q4 2023

ARRY Reports Decrease in Consolidated Revenue for the Latest Quarter

Segments of revenue

In the latest quarter, ARRY's consolidated revenue decreased by $61.0 million, or 4%. This decline was driven by a decrease in Array Legacy Operations of $95.1 million, offset by an increase in STI Operations of $34.1 million. The revenue decrease in Array Legacy Operations was primarily due to a decrease in the number of megawatts shipped, resulting from project delays from customers. On the other hand, the revenue increase in STI Operations was driven by an increase in the number of megawatts shipped, particularly in the Brazil region, which offset lower average selling prices (ASPs) due to a smaller percentage of construction services being offered.

Strengths

Despite the overall decrease in consolidated revenue, ARRY's gross profit margin improved. Consolidated cost of revenue decreased by $263.8 million, or 19%, primarily due to a reduction in revenue combined with a decrease in input costs. As a result, the consolidated gross profit margin increased to 26% for the latest quarter, compared to the previous year. This improvement in gross profit margin indicates the company's ability to manage costs effectively.

Challenges

The decrease in consolidated revenue for the latest quarter highlights the challenges ARRY faces in Array Legacy Operations. The decline in the number of megawatts shipped, driven by project delays from customers, impacted the revenue performance in this segment. Additionally, the lower ASPs in STI Operations, resulting from a smaller percentage of construction services being offered, posed a challenge to revenue growth.

Noteworthy

It is noteworthy that ARRY's revenue performance was influenced by factors such as the supply and demand dynamics of solar tracking systems, changes in project mix, geographic mix of customers, competition, and government incentives. These external factors play a significant role in shaping the company's revenue growth.

Summary

ARRY reported a decrease in consolidated revenue for the latest quarter, primarily driven by a decline in Array Legacy Operations. However, the company demonstrated strength in managing costs, as evidenced by the improvement in gross profit margin. The challenges faced by ARRY include project delays impacting megawatt shipments and lower ASPs in certain regions. It is important for the company to address these challenges and continue focusing on maintaining market share, expanding into new markets, and developing innovative products to drive future revenue growth.

Source documents

Form 10-K  filed on Feb 28, 2024
100 pages scanned

Reference data

Company financials Q4 revenue 342M
Analyst estimates Q4 EPS beat by 64.04%
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