Credit: Shutterstock photoSolarCity is a popular name in the solar energy service industry. They provide solar power, energy efficiency and electric vehicle design, monitoring and maintenance services to homeowners, businesses, schools, non-profits, and government organizations in the United States. The high demand for solar photovoltaic system installations is a major factor in SolarCity's rapid growth in recent years.
However, SolarCity has been under pressure lately, as competition from other solar energy providers-namely, Vivint Solar Inc ( VSLR ) and SunPower Corp ( SPWR )-has made this sector a very tough one to be in for the short term. Due to this, investors are eagerly awaiting SCTY's earnings report in order to set the record straight, and to give guidance for the company's outlook.
Earnings Estimates
Investors should also note the recent earnings estimate revisions for SolarCity, as the consensus estimate has been moving slightly lower. However, SolarCity does have a solid history in earnings season, with an average earnings surprise of 10.18%.
Zacks Rank
Currently, SCTY holds at a Zacks Rank #3, but that could definitely change following SolarCity's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings
SolarCity missed on earnings. Our consensus earnings estimate called for EPS of $-1.26/share, and the company reported EPS of $-1.33 instead. Investors should note that these figures take out stock option expenses and are before non-recurring items.
Revenue
SCTY reported revenues of $71.8 million, which was in-line our consensus estimate of $71.8 million.
Key Stats to Note
This earnings report follows a press release delivered yesterday regarding first-time service for three major Nevada cities: Reno, Sparks, and Carson City. "The nation's #1 rooftop solar power provider can make it possible for many homeowners in Reno, Sparks and Carson City to install solar panels with no upfront cost and pay less for solar electricity than they pay for electricity from their utility company," said the company. "SolarCity can allow area homeowners to go solar for as little as $30 per month, with design, installation, financing, insurance and monitoring included. SolarCity plans to open a Reno operations center in April, and expects to hire more than 30 local staff in the next few months."
Investors should also note that the average power cost came in at $2.86/watt, down 9% y/y. Meanwhile MW booked were up over 100% year-over-year, and MW deployed was up 70% when compared to last year.
Stock Price
SolarCity shares were down 1.76% ahead of the report, and are down nearly 4.5%-and trending lower-now following the release. Clearly, the initial reaction to the release is not good. Shares closed Wednesday at $57.10, but make sure to check back later for our full write up on SolarCity's earnings report!
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SOLARCITY CORP (SCTY): Free Stock Analysis Report
VIVINT SOLAR (VSLR): Free Stock Analysis Report
SUNPOWER CORP-A (SPWR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
