SolarCity and SolarEdge Technologies released their latest earnings reports after closing bell tonight. SolarCity posted losses of $2.32 per share on $185.8 million in revenue for its second fiscal quarter, compared to the consensus estimates of $2.44 per share in losses and $146.1 million in revenue. In last year’s second quarter, the solar panel installer reported losses of 23 cents per share on $102.8 million in sales.
SolarEdge reported non-GAAP earnings of 44 cents per share on $124.8 million in revenue for its fourth fiscal quarter, compared to the consensus estimates of 41 cents per share and $129.5 million in sales. In the year-ago quarter, the SolarCity competitor reported earnings of 31 cents per share on $98.4 million in revenue.
SolarCity sees strong response to solar loans
SolarCity said it installed 201 megawatts of capacity during the second quarter, exceeding guidance by 9%, and deployed 211 megawatts. Megawatts booked increased 42% sequentially. The value of the megawatts deployed rose 16 cents sequentially to $3.62 per watt. Costs fell to $3.05 per watt on the back of a 21% improvement in sales costs compared to the first quarter.
SolarCity said consumer response to its new solar loan offering, which it introduced in May, has been positive as solar loans and cash system sales booked in July represented 19% of gross megawatts booked, marking the highest percentage since May 2015.
The company expects to install 170 megawatts in the third quarter due to weaker first quarter bookings. It expects to install between 315 and 415 megawatts in the fourth quarter. SolarCity expects non-GAAP losses per share of between $2.55 and $2.65 per share.
Shares of SolarCity were trading at around $24.60 in after-hours trades.
SolarEdge Technologies plunges after sales miss
SolarEdge’s GAAP gross margin was 31.4% in the fourth quarter, while its GAAP net earnings were 39 cents per share, an increase from the year-ago quarter’s 21 cents per share in GAAP earnings. The company shipped 427 megawatts worth of inverters during the fourth quarter.
“While this quarter is characterized by a general slowdown in the residential U.S. market, we were able to compensate with increased sales in other geographic regions in which we sell,” SolarEdge Technologies Founder, Chairman and Chief Executive Guy Sella said in a statement. “We remain on target with our plans to grow our business and increase market share without sacrificing gross margins and profitability.”
SolarEdge expects first quarter revenue to come in at $130 million to $139 million, which is on the weak side compared to consensus, which currently stands at $136.9 million. The company expects its first quarter gross margin to be between 30% and 32%.
Shares of SolarEdge Technologies tumbled in after-hours trades, falling as much as 6.82% to $17.35 after tonight’s print.