Solar PV installer
) shares slipped 3.5% in after-hours trading yesterday as the
company delayed its full earnings results until next week. The
company attributed the delay to accounting related to its recent
acquisitions as well as a change in overhead allocation stemming
from a rise in the volume of megawatt (MW) deployed. The company
now expects to release complete 2013 financial results on Mar 3.
CANADIAN SOLAR (CSIQ): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
SOLARCITY CORP (SCTY): Free Stock Analysis
TRINA SOLAR LTD (TSL): Free Stock Analysis
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In December last year, SolarCity completed the acquisition of
rooftop racking systems maker Zep Solar, Inc. for an aggregate
consideration of about $158 million. In Sep 2013, the company
completed the acquisition of Paramount Solar, a subsidiary of
Paramount Equity LLC., for $120 million.
Though SolarCity had to pay for the delay in releasing fourth
quarter earnings, the company successfully installed a record 103
MW of panels in the quarter, up sharply from 48 MW a year ago.
The customer count also expanded 13% sequentially. Notably,
residential installations grew 130% year over year to 70 MW
during the quarter. This brings the 2013 total installations to
280 MW, above the company's previous forecast of 278 MW.
SolarCity also foresees 78 MW to 82 MW of panel installations for
the first quarter of 2014 and reaffirmed its earlier projection
of 475 MW to 525 MW for the year.
The company's top line surged 87% year over year to $47.3 million
during the quarter, ahead of the Zacks Consensus Estimate of
$44.0 million by 7.5%. Its lease revenue during the quarter stood
at $22.4 million, up 59% year over year, but at the low end of
the company's guided range of $22 million to $24 million.
Moreover, the company turned cash flow positive in the fourth
quarter of 2013 and exited 2013 with a strong year-end cash
balance. SolarCity also remains on track for 2014 with a record
number of new residential energy contracts signed in Jan 2014.
The company also noted that costs per watt had declined 30% in
Although the company did not reveal the bottom-line numbers in
its latest preliminary financial update, the Zacks Consensus
Estimate is pegged at a loss of 56 cents per share for the
quarter and at a loss of $1.81 per share for 2013.
SolarCity is one of several companies under real life 'Iron Man'
Elon Musk's umbrella. Founded in 2006, Musk is currently
the chairman of the company he conceived to combat global warming
and minimize air pollution.
SolarCity currently retains a Zacks Rank #2 (Buy). Other
companies in the space worth considering include
Canadian Solar Inc.
JinkoSolar Holding Co., Ltd.
Trina Solar Ltd.
). While Canadian Solar and Jinko Solar sport a Zacks Rank #1
(Strong Buy), Trina Solar carries a Zacks Rank #2 (Buy).