What Should You Do With ARRY Stock Ahead of Q4 Earnings?

Core Viewpoint - Array Technologies, Inc. (ARRY) is anticipated to experience a decline in both revenue and earnings for the fourth quarter of 2025, with a revenue estimate of $210 million, reflecting a 23.7% decrease year-over-year [1][7]. Revenue and Earnings Estimates - The consensus estimate for ARRY's fourth-quarter earnings is projected at breakeven, with no changes in the estimates over the past 30 days. The company reported earnings of 16 cents per share in the same quarter last year [2]. - The Earnings ESP for ARRY stands at 0.00%, indicating that both the Most Accurate Estimate and the Zacks Consensus Estimate are at $0.00 [5]. Performance History - Array Technologies has a history of earnings surprises, having beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 25.12% [3]. Factors Influencing Q4 Results - Revenue performance is expected to benefit from improved operations in both Array Legacy Operations and STI Operations, driven by higher volumes and contributions from the APA acquisition [6][8]. - Despite potential revenue support from backlogs and higher volumes, delays in project completions and deliveries may negatively impact overall revenue [8]. Cost and Expense Dynamics - The increase in revenues is likely to outpace the rise in expenses, which may favor higher profits. However, operating expenses are expected to rise due to increased general and administrative costs [9]. Stock Performance and Valuation - ARRY's stock has underperformed compared to the industry and the S&P 500 in Q4 2025, but has outperformed its sector [10]. - The stock is currently undervalued, trading at a price-to-earnings multiple of 11.06, lower than the industry average of 18.69 [11]. Investment Thesis - Array Technologies is positioned to benefit from long-term growth in the renewable energy sector, particularly in the U.S. solar market, which is seeing increased adoption by utilities, corporations, and homeowners [13]. - The company has a substantial order backlog, providing strong revenue visibility for upcoming quarters, and is enhancing its competitive edge through the introduction of domestically sourced trackers [16]. Challenges and Risks - Federal policy changes have introduced near-term uncertainties affecting permitting, procurement, and supply chains, while elevated U.S. tariffs continue to pressure system costs and margins [17].