What to Expect From SolarCity Earnings
SolarCity is scheduled to report its fourth-quarter financial results Wednesday after the U.S. markets close.
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SolarCity Corp. (NASDAQ: SCTY) will report its fourth-quarter financial results Wednesday after the markets close. Thomson Reuters has consensus estimates of -$1.27 in earnings per share (EPS) on $71.75 million in revenue. In the fourth quarter of the previous year, the company reported -$0.46 in EPS and revenue of $47.30 million.
The company has come back from recent lows in mid-January for a couple of reasons. First, oil went back above $50, which matters when many investors consider alternative energy a leveraged bet on fossil fuel prices. Then the new 2016 budget from President Obama added some help for solar and alternative energy as well.
SolarCity saw a drop of 28.7% in short interest in the two-week period to January 30. Some 10.3% of the stock, or 3.9 million shares, are short, and days to cover fell to two.
The company had a couple of analysts make calls on it in January. Raymond James reiterated a Positive rating for SolarCity, though no price target was listed with this call. Its previously listed price target was $75.00. Canaccord Genuity had a Buy rating and lowered its price target to $64.00 from $87.00.
Over the fourth quarter, the 50-day moving average acted as strong resistance. However, at the beginning of February, SolarCity shares crossed over that moving average and they are currently testing the 200-day moving average. The 50-day moving average is $52.34 and the 200-day moving average is $58.36.
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Overall, more growth appears to be coming. Bloomberg reported that U.S. investment in clean energy rose from $48 billion in 2013 to $52 billion in 2014. Only China sunk more investment into clean energy last year, $89 billion in 2014. Globally, clean energy investment rose to $310 billion, the second highest total on record, behind only 2011’s $318 billion.
In anticipation of earnings, shares of SolarCity were flat at $58.21 midday in Tuesday’s trading session. The stock has a consensus analyst price target of $84.89 and a 52-week trading range of $45.79 to $88.35.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.