We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Solar Stocks (SCTY, SPWR) Slump on Earnings, Trump Victory
Read MoreHide Full Article
Shares of some of the market’s most popular solar energy stocks, including SolarCity and SunPower (SPWR - Free Report) , as well as the Guggenheim Solar ETF (TAN - Free Report) and the Vaneck Vectors Solar ETF (KWT - Free Report) , continue to slump Thursday as the market adjusts to Donald Trump’s upset victory in the election and relatively mixed earnings results.
In the midst of a merger with electric car giant Tesla Motors (TSLA - Free Report) , SolarCity released its third-quarter earnings report on Wednesday. SolarCity posted an adjusted loss of $2.27 per share, narrower than the Zacks Consensus Estimate of -$2.35 per share but well below the -$2.10 per share the company posted last year (SolarCity Reports Narrower-than-Expected Q3 Loss).
Although SolarCity was not able to post earnings growth this year, the company’s revenues surged 76.6% to $200.6 million, which beat our consensus estimate of $168 million. Considering its impending deal with Tesla, SolarCity did not provide any guidance in its report.
Another major play in the solar industry, SunPower, also reported its third-quarter results on Wednesday. SunPower posted adjusted earnings of 56 cents per share, which missed the Zacks Consensus Estimate of 67 cents but came in well ahead of last year’s figure of 3 cents per share. The company’s quarterly revenue was up 74.5% year-over-year to $770.1 million, but that figure fell just short of our consensus estimate of $776 million (SunPower Lags Earnings & Revenue Estimates in Q3).
Wednesday’s mixed earnings results come just a day after Donald Trump’s shocking victory over Hillary Clinton, which promises to have serious implications on the energy industry. Trump didn’t shy away from his skepticism about global climate change, and much of his campaign focused on bringing back the traditional energy businesses of coal, oil, and gas.
Although Trump’s specific plans are relatively unclear, it does appear that the President-elect plans to roll back environmental regulations in an effort to support the American non-renewable energy industry.
For a solar industry that has relied on support from the government, this probably spells bad news, and the market knows it. Shares of TAN are down about 6.7% since Tuesday afternoon, and KWT has fallen about 5.5% in that time.
For now, the future of the solar business remains uncertain, and if there’s one thing that investors hate, it’s just that.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Solar Stocks (SCTY, SPWR) Slump on Earnings, Trump Victory
Shares of some of the market’s most popular solar energy stocks, including SolarCity and SunPower (SPWR - Free Report) , as well as the Guggenheim Solar ETF (TAN - Free Report) and the Vaneck Vectors Solar ETF (KWT - Free Report) , continue to slump Thursday as the market adjusts to Donald Trump’s upset victory in the election and relatively mixed earnings results.
In the midst of a merger with electric car giant Tesla Motors (TSLA - Free Report) , SolarCity released its third-quarter earnings report on Wednesday. SolarCity posted an adjusted loss of $2.27 per share, narrower than the Zacks Consensus Estimate of -$2.35 per share but well below the -$2.10 per share the company posted last year (SolarCity Reports Narrower-than-Expected Q3 Loss).
Although SolarCity was not able to post earnings growth this year, the company’s revenues surged 76.6% to $200.6 million, which beat our consensus estimate of $168 million. Considering its impending deal with Tesla, SolarCity did not provide any guidance in its report.
Another major play in the solar industry, SunPower, also reported its third-quarter results on Wednesday. SunPower posted adjusted earnings of 56 cents per share, which missed the Zacks Consensus Estimate of 67 cents but came in well ahead of last year’s figure of 3 cents per share. The company’s quarterly revenue was up 74.5% year-over-year to $770.1 million, but that figure fell just short of our consensus estimate of $776 million (SunPower Lags Earnings & Revenue Estimates in Q3).
Wednesday’s mixed earnings results come just a day after Donald Trump’s shocking victory over Hillary Clinton, which promises to have serious implications on the energy industry. Trump didn’t shy away from his skepticism about global climate change, and much of his campaign focused on bringing back the traditional energy businesses of coal, oil, and gas.
Although Trump’s specific plans are relatively unclear, it does appear that the President-elect plans to roll back environmental regulations in an effort to support the American non-renewable energy industry.
For a solar industry that has relied on support from the government, this probably spells bad news, and the market knows it. Shares of TAN are down about 6.7% since Tuesday afternoon, and KWT has fallen about 5.5% in that time.
For now, the future of the solar business remains uncertain, and if there’s one thing that investors hate, it’s just that.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>