Already suffering from the impact of tumbling oil prices eroding demand for renewable energy sources, the California-based company backed by Tesla Motors (NASDAQ:TSLA) founder Elon Musk reported solar panel installations in the fourth quarter of 2015 ran at 272 megawatts (MW) compared with a forecast of between 280 to 300 MW.
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“For Q1 2016, we also expect GAAP Operating Expenses of $230 million – $240 million (including between $30 million and $32 million in non-cash amortization of intangibles and stock compensation expense) and Non-GAAP Loss Per Share (before Income (Loss) Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests)* between ($2.55) – ($2.65)… The current hard stock markets just do not allow small misses”. Finally, Needham & Company LLC reaffirmed a hold rating on shares of SolarCity Corp in a research note on Saturday, January 30th.
Time Warner Inc. (NYSE:TWX), raised its 2016 adjusted profit forecast and set a $5 billion share buyback program.
The stock has, surprisingly perhaps, received one upgrade this morning, from Raymond James’s Pavel Molchanov, who raises his rating to Strong Buy from Outperform, writing that the stock is now below what he estimates for the “net present value” of the business – a level “which we never thought we’d see”. They now have a Dollars 124 price target on the stock. The stock now has an average rating of Buy and an average target price of $57.73.
Shares of SolarCity Corp (NASDAQ:SCTY) traded down 29.30% during trading on Friday, hitting $18.63. And with the company’s market cap likely to be below $2 billion on Wednesday there’s great value given the $2.0 billion in discounted pre-tax unlevered cash flow left on contracts. The company actually produced revenue for the quarter in the amount of $115.48 million. The company’s revenue was up 60.8% compared to the same quarter a year ago. During the same period in the prior year, the firm posted ($1.47) EPS. Arcus Capital Partners LLC bought a new stake in SolarCity Corp during the fourth quarter valued at $255,000. ProShare Advisors LLC increased its stake in SolarCity Corp by 5.4% in the fourth quarter.
Another drag on the shares is the company’s estimated decline of 34% in first-quarter installations, which it describes as “a higher-than-usual seasonal slowdown”.
The market is certainly looking at SolarCity’s weak guidance as bad news, but there were some good signs in the quarter that shouldn’t go overlooked. The company also sells electricity generated by solar energy systems to customers. The Company integrates the sales, engineering, installation, monitoring, maintenance and financing of its distributed solar energy systems.
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Out of the 9 analysts polled by TipRanks over the last 3 months, 7 are bullish on the solar panel company, 1 is neutral, and 1 is bearish. It offers long-term energy solutions to residential, commercial and government customers. The ratio turned negative, as 46 funds sold all their SolarCity Corp shares they owned while 69 reduced their positions.
