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SolarCity (SCTY) Q2 Loss Widens Y/Y on Rising Expenses
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SolarCity Corp. , the largest U.S. rooftop solar installer, posted an adjusted loss of $2.32 per share, narrower than the Zacks Consensus Estimate of a loss of $2.43. However, the quarterly figure was much wider than the year-ago loss of $1.61 per share. The wider loss can be attributed to the company’s rising expenses.
In marked contrast to the appalling loss, SolarCity posted total revenues of $185.8 million in the quarter, beating the Zacks Consensus Estimate of $134.6 million by 37.9%. On a year-over-year basis, reported revenues surged 80.7% mainly on the back of higher revenues from periodic billings that mainly represent payments from customers of the company’s long-term lease, loan and PPA contracts.
SolarCity’s gross profit in the second quarter surged 64.5% to $71.3 million from $43.3 million a year ago.
Operating Highlights
In the reported quarter, total deployment was 211 megawatt (MW), up 19.2% year over year, bringing the total installed capacity to 2,303 MW as of Jun 30, 2016.
The company installed 201 MW of solar panels in the quarter, up 6.3%. It exited the quarter with cumulative installations of 2,360 MW.
During the quarter, commercial installations surged 14.2%, while residential installations grew 5.4%.
The company’s total operating expenses shot up 51% to $265.4 million due to higher sales and marketing, research and development, and general and administrative expenses. The company also incurred additional restructuring as well as pre-production expenses during the quarter.
Cost per watt was $3.05 in the second quarter, up 4.8%. However, SolarCity’s installation cost declined 2.8% to $2.07 per watt.
Financial Position
As of Jun 30, 2016, SolarCity had cash and cash equivalents of $145.7 million, compared with $382.5 million as of Dec 31, 2015.
Long-term debt as of Jun 30, 2016, increased to $1,173.5 million (net of current portion) from $1,006.6 million as of Dec 31, 2015.
In the second quarter, SolarCity used net cash of $195.9 million in operating activities, compared with $140.6 million a year ago.
Guidance
For the third quarter of 2016, SolarCity expects operating expenses of $240 million to $250 million and non-GAAP loss per share in the $2.55–$2.65 band (wider than the second-quarter 2016 loss of $2.32 and the third-quarter 2015 loss of $2.10).
The company expects installations to decline to 170 MW.
As stated by the company earlier, it expects to install 900–1,000 MW of rooftop solar panels in 2016, down from its prior guidance of 1,000–1,100 MW. The revision was due to lower bookings in the first half of the year.
Peer Releases
SunPower Corp. (SPWR - Free Report) reported second-quarter 2016 adjusted loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2016 earnings of 87 cents a share, beating the Zacks Consensus Estimate of 58 cents by 50%. Earnings also surged 67.3% from the prior-year figure of 52 cents per share on the back of higher sales and gross profits.
8point3 Energy Partners LP reported earnings of 27 cents per share in the second quarter of fiscal 2016 (ending May 31, 2016). The Zacks Consensus Estimate was at a loss of 2 cents. The partnership swung into profit with a net income of $10 million in the reported quarter, from a net loss incurred in the year-ago period.
Zacks Rank
SolarCity currently carries a Zacks Rank #3 (Hold).
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SolarCity (SCTY) Q2 Loss Widens Y/Y on Rising Expenses
SolarCity Corp. , the largest U.S. rooftop solar installer, posted an adjusted loss of $2.32 per share, narrower than the Zacks Consensus Estimate of a loss of $2.43. However, the quarterly figure was much wider than the year-ago loss of $1.61 per share. The wider loss can be attributed to the company’s rising expenses.
Total Revenue & Gross Profit
In marked contrast to the appalling loss, SolarCity posted total revenues of $185.8 million in the quarter, beating the Zacks Consensus Estimate of $134.6 million by 37.9%. On a year-over-year basis, reported revenues surged 80.7% mainly on the back of higher revenues from periodic billings that mainly represent payments from customers of the company’s long-term lease, loan and PPA contracts.
SolarCity’s gross profit in the second quarter surged 64.5% to $71.3 million from $43.3 million a year ago.
Operating Highlights
In the reported quarter, total deployment was 211 megawatt (MW), up 19.2% year over year, bringing the total installed capacity to 2,303 MW as of Jun 30, 2016.
The company installed 201 MW of solar panels in the quarter, up 6.3%. It exited the quarter with cumulative installations of 2,360 MW.
During the quarter, commercial installations surged 14.2%, while residential installations grew 5.4%.
The company’s total operating expenses shot up 51% to $265.4 million due to higher sales and marketing, research and development, and general and administrative expenses. The company also incurred additional restructuring as well as pre-production expenses during the quarter.
Cost per watt was $3.05 in the second quarter, up 4.8%. However, SolarCity’s installation cost declined 2.8% to $2.07 per watt.
Financial Position
As of Jun 30, 2016, SolarCity had cash and cash equivalents of $145.7 million, compared with $382.5 million as of Dec 31, 2015.
Long-term debt as of Jun 30, 2016, increased to $1,173.5 million (net of current portion) from $1,006.6 million as of Dec 31, 2015.
In the second quarter, SolarCity used net cash of $195.9 million in operating activities, compared with $140.6 million a year ago.
Guidance
For the third quarter of 2016, SolarCity expects operating expenses of $240 million to $250 million and non-GAAP loss per share in the $2.55–$2.65 band (wider than the second-quarter 2016 loss of $2.32 and the third-quarter 2015 loss of $2.10).
The company expects installations to decline to 170 MW.
As stated by the company earlier, it expects to install 900–1,000 MW of rooftop solar panels in 2016, down from its prior guidance of 1,000–1,100 MW. The revision was due to lower bookings in the first half of the year.
Peer Releases
SunPower Corp. (SPWR - Free Report) reported second-quarter 2016 adjusted loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2016 earnings of 87 cents a share, beating the Zacks Consensus Estimate of 58 cents by 50%. Earnings also surged 67.3% from the prior-year figure of 52 cents per share on the back of higher sales and gross profits.
8point3 Energy Partners LP reported earnings of 27 cents per share in the second quarter of fiscal 2016 (ending May 31, 2016). The Zacks Consensus Estimate was at a loss of 2 cents. The partnership swung into profit with a net income of $10 million in the reported quarter, from a net loss incurred in the year-ago period.
Zacks Rank
SolarCity currently carries a Zacks Rank #3 (Hold).
SOLARCITY CORP Price, Consensus and EPS Surprise
SOLARCITY CORP Price, Consensus and EPS Surprise | SOLARCITY CORP Quote
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