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Sunrun's (RUN) Q1 Earnings Miss Estimates, Revenues Beat

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Sunrun Inc. (RUN - Free Report) reported first-quarter 2019 loss of 12 cents per share against the Zacks Consensus Estimate of earnings of 32 cents. The bottom line also deteriorated from the year-ago quarter’s earnings of 25 cents.

Revenues

Sunrun’s revenues of $194.5 million in the quarter surpassed the Zacks Consensus Estimate of $152.9 million by 27.2%. Revenues also surged 34.7% from the year-ago quarter’s $144.4 million.

Operational Highlights

Total operating expenses were $238.7 million in the first quarter, which increased 19% year over year. Operating expenses in the reported quarter increased on escalated costs of customer agreements and incentives, high costs of solar energy systems and product sales, increased sales and marketing costs, and elevated research and development expenses.

Interest expenses were $41.3 million, up approximately 46.6% on a year-over-year basis.

Total cost of revenues was $147.3 million that witnessed an increase of 24% year over year.

Sunrun Inc. Price, Consensus and EPS Surprise

 

Sunrun Inc. Price, Consensus and EPS Surprise | Sunrun Inc. Quote

Key Highlights

In the reported quarter, Megawatt (MW) deployed increased 27% to 86 MW from 68 MW in the first quarter of 2018.

Creation Cost per watt was $3.46 in the first quarter of 2019 compared with $3.51 in the fourth quarter of 2018. NPV created in the quarter was $77 million, reflecting 19% year-over-year increase.

The company’s customer base grew 28% year over year to 242,000.

Financial Performance

Sunrun had $245.6 million of cash, as of Mar 31, 2019, up from $226.6 million at the end of 2018.

Net cash provided by operating activities was $11.4 million at end of the first quarter against $45.7 million used for operating activities in the year-ago quarter.

Total recourse and non-recourse debt, net of current portion, was $1,797.3 million at the end of first-quarter 2019 compared with $1,713.4 million as of Dec 31, 2018.

Second Quarter and 2019 Guidance

For the second quarter of 2019, Sunrun expects deployments of 102-104 MW. For 2019, the company expects deployments to grow 16-18% year over year.

Zacks Rank

Sunrun currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Solar Releases

First Solar Inc. (FSLR - Free Report) incurred a loss of 64 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents.

Enphase Energy (ENPH - Free Report) reported first-quarter 2019 adjusted earnings of 8 cents per share against the adjusted loss of a cent in the year-ago quarter.

SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2019 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by 3.2%.

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