The days may be growing shorter, but Array Technologies (ARRY 1.75%) shone brightly in investors' eyes this week after the solar company reported third-quarter 2022 earnings. Beating analysts' revenue and earnings estimates, Array also warmed investors' hearts with an auspicious forecast for 2022.
As of the end of trading on Thursday, shares of Array, a leader in solar-tracking equipment for utility-scale applications, have shot up 20.6% since the end of trading last Friday.
Setting a new quarterly record for revenue, Array reported sales of $515 million, representing a year-over-year gain of 173%. Analysts had expected the company to report $429 million on the top line. While the acquisition of STI Norland accounted for a large part of the company's revenue growth, organic revenue growth was strong, representing a 112% over that which Array reported in Q3 2021.
And it wasn't only the top of the income statement where Array sparkled. For the fourth consecutive quarter, Array expanded its gross profit margin, resulting in the company generating a gross margin of 15.6% in Q3 2022 -- notably higher than the 3.1% gross margin that it reported during the same period last year. The growth, moreover, extended to the bottom of the income statement. While analysts expected the company to report earnings per share of $0.11, Array booked EPS of $0.19.
Investors also warmed up to the company's outlook for 2022. Management projects Array will report revenue of $1.5 billion to $1.6 billion. Should the company achieve the midpoint of this guidance, it will represent a year-over-year gain of about 82%.
Basking in the glow of a strong earnings report, investors had a lot to celebrate this week. It seems, however, that this solar stock is not solely one for renewable energy investors to keep on their radars, but growth investors as well.