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Goldman Sachs analysts highlighted that rising yields, which are the interest rates governments pay to borrow money, are creating turmoil in the bond market. When these rates go up, it typically becomes more expensive for companies to borrow money for big construction projects.
This matters for a business like this one that spends heavily on building data center power systems. While the company has a large backlog of contracts, higher borrowing costs across the economy can make it more expensive to fund the manufacturing and installation of its microgrids before the revenue from those projects starts flowing in.
Source: CNBC
The early record is choppy and hard to predict. Management is still finding its footing as it shifts from designing power systems to building them at scale.
| Expectation | |
|---|---|
| EPS | $-0.01 |
| Revenue | $167M |