Tags: SolarCity | Demand | solar | panel

SolarCity Reports 'Unprecedented Demand' for Solar Panel Installations

Thursday, 07 Aug 2014 05:51 PM

SolarCity Corp., the largest installer of residential solar panels in the United States, reported a smaller-than-expected quarterly loss amid "unprecedented demand."

The company, backed by Tesla Motors Inc. founder Elon Musk, said it added more than 30,000 customers in the second quarter ended June 30, an increase of 218 percent from a year earlier.

The company's shares were up 5.5 percent at $79.80 in extended trading, after gaining 3.8 percent during the regular session.

The San Mateo, California-based company said it deployed 107 megawatts (MW) of solar panels in the quarter, in line with its forecast of 105-110 MW. The company also booked 218 megawatts.

The company said it expects to deploy 135-150 MW in the third quarter.

SolarCity has become a hit with Wall Street due to its business model that allows homeowners to spread payments for solar panels over 20 years, instead of a one-time hefty down payment.

SolarCity's stock had soared almost ten-fold since it went public in December 2012 at $8.00.

The company signed a deal with Groupon Inc in May to offer deals to customers on the Groupon site.

At the end of the second quarter, SolarCity had $3.3 billion of contracted payments remaining, up 32 percent from the first quarter.

The company said it was on track to deploy 500-550 MW this year and 900-1,000 MW in 2015.

SolarCity is expected to face competition as First Solar and SunPower Corp enter the solar installation market.

The company appointed a new chief financial officer on Monday to help steer back to profitability.

Excluding one-time items, SolarCity posted a loss of 96 cents per share, smaller than the average analyst estimate of 99 cents per share, according to Thomson Reuters I/B/E/S.

The company's revenue rose 62 percent to $61.3 million.

The net loss attributable to stockholders widened to $47.7 million from $39.5 million as operating expenses jumped 123 percent.

The company, facing stiff competition and falling prices amid a glut of panels from Chinese manufacturers, bought solar panel maker Silevo to drive down costs in June.

SolarCity last reported a quarterly profit in the fourth quarter of 2013. Prior to that, the company had not reported a profit since the first quarter of 2012.

© 2017 Thomson/Reuters. All rights reserved.

 
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SolarCity Corp., the largest installer of residential solar panels in the United States, reported a smaller-than-expected quarterly loss amid what the company called "unprecedented demand."
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2014-51-07
Thursday, 07 Aug 2014 05:51 PM
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