Sunnova Energy NOVA 2025Q1 Earnings Preview Downside Ahead on Weak Return on Equity EPS Forecast

AinvestwebMonday, Jun 2, 2025 7:46 pm ET
1min read
Forward-Looking Analysis
Sunnova Energy International is set to announce its Q1 2025 earnings on June 5th, 2025. Analysts predict the company will continue to struggle with profitability, forecasting an EPS of -$3.12 for 2025, a slight decline from its previous EPS of -$2.96. Revenue is expected to grow by 14.25% annually, reaching $950.1 million, but this growth is insufficient to offset the predicted earnings decline. The company's return on equity is projected at -6.49%, well below the industry average of 30.55%. Analysts have set a price target of $3.34, representing a significant potential upside of 1,438.71% from the current share price of $0.22, but the majority recommend holding the stock, reflecting uncertainty.

Historical Performance Review
In Q4 2024, Sunnova Energy reported revenue of $224.13 million, a net income loss of $127.68 million, and an EPS of -$1.14. The company achieved a gross profit of $99.34 million, indicating challenges in managing costs and achieving profitability. This performance underscored the company's ongoing struggles to align expenses with revenue growth, as it fell short of analyst expectations in several key areas, including EPS.

Additional News
Sunnova Energy's stock performance has been under pressure, with its share price down 87.1% since its last earnings report. The company has a market capitalization of $27.19 million and an enterprise value of $8.30 billion. Its earnings report is expected on June 9, 2025. Analysts maintain a conservative outlook with a majority rating the stock as a 'Hold', suggesting caution in the current solar energy market landscape. Sunnova's projected 0.22% return in earnings for 2025 further highlights the financial hurdles ahead.

Summary & Outlook
Sunnova Energy faces significant financial challenges, with low return on equity and negative EPS forecasts overshadowing its revenue growth. While analyst price targets suggest substantial upside potential, the prevailing hold recommendations indicate skepticism about immediate recovery. The company's historical performance reflects difficulty in achieving profitability and managing expenses effectively. Overall, the outlook remains bearish, given the weak financial metrics and ongoing market pressures. Prospects hinge on improving operational efficiency and aligning revenue growth with sustainable profitability.