SolarCity Posts Larger Loss, Forecasts More to Come

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SolarCity Corp. (NASDAQ: SCTY) reported first-quarter 2016 results after markets closed Monday afternoon. For the quarter, the solar PV installer posted an adjusted diluted net loss per share of $2.56 on revenues of $122.6 million. In the same period a year ago, the company reported a net loss per share of $1.52 on revenues of $67.48 million. First-quarter results compare to the Thomson Reuters consensus estimates for a loss per share of $2.31 on revenues of $108.44 million.

On a GAAP basis the company posted a net loss of $0.25 per share compared with a loss of $0.22 in the year-ago quarter.

Shares are sinking in the after-hours market as the company’s full-year forecast for new installation has dropped from a prior value of 1.25 gigawatts to a new range of 1 to 1.1 gigawatts. For the second quarter SolarCity expects to install 185 megawatts, a 2% decline compared with a year ago. The company now expects a net loss per share of $2.70 to $2.80 per share, well below the consensus estimate for a net loss of $2.13.

Here’s a passage from the shareholder’s letter:

[W]e exceeded our installation targets for the quarter, and despite an uptick in costs we are already on the path to bring them back down later this year. We have raised $1.1 billion in new project financing through the end of April including a ground-breaking $227 million cash equity transaction with John Hancock that offers both a sizable new financing channel and a reputable valuation of our underlying contracted assets. In turn, we head into the remainder of the year well-positioned not only to achieve our goal of generating positive cash by year-end but reaching the state of our operations in which our MW portfolio will continue to grow along with our cash balance. Though our industry has endured a rocky road over the last several months, we are solely focused on executing on our plan and achieving our targets for this year and beyond.

Shares traded down about 15% in Monday’s after-hours session at $19.09 in a 52-week range of %16.31 to $63.79. The consensus price target is on the stock is $40.29.