SolarCity Corp Earnings: Here’s Why Investors are Selling Shares Now

SolarCity Corporation (NASDAQ:SCTY) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.34%.

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SolarCity Corporation Earnings Cheat Sheet

Revenue: Was the same at $29.98 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: SolarCity Corporation reported adjusted EPS loss of $0.31 per share. By that measure, the company missed the mean analyst estimate of $-0.26. It beat the average revenue estimate of $29.08 million.

Quoting Management: “Extending its leadership as the nation’s premier clean energy provider, SolarCity not only grew its customer base 106% year-over-year to over 57,400 and increased its long-term contracted cash flows to $1.22 billion but also exceeded guidance of MW deployed of 41 MW with 46 MW in the first quarter of 2013,” said Lyndon Rive, CEO. “Through our unique, vertically-integrated platform of financing and installing solar systems, we offer customers a compelling value proposition of clean energy for lower than their local utility rate,” continued Mr. Rive. “And our growing economies of scale and falling cost of capital are leading us to retain greater value for our shareholders.”

Key Stats (on next page)…

Revenue increased 18.64% from $25.27 million in the previous quarter. EPS increased to $-0.31 in the quarter versus EPS of $-0.54 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.26 to a loss $0.34. For the current year, the average estimate has moved down from a loss of $1.09 to a loss of $1.30 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)