SolarCity Corp Delivers Mixed Q2 Financial Results; Stock Declines

The shares of SolarCity were trading lower after delivering mixed financial results for the second quarter. The stock price of the company was down 1% to $$57.47 per share around 12:27 in the afternoon in New York.

SolarCity financial results

During the second quarter, SolarCity generated non-GAAP earnings of $1.61 per share on $103 million in revenue. The solar energy systems provider exceeded the $1.57 in earnings per share on $90 million in revenue expected by Wall Street analysts.

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According to SolarCity, its GAAP operating Lease and Solar Energy Systems Incentive revenue increased 81% to $78.3 million. Its revenue from Solar Energy Systems and Components was $14.5 million.

SolarCity said its operating lease and solar energy incentive gross margin was 52%. Its gross margin on solar energy systems and components was 10%.

The company reported total GAAP operating expenses of $175.8 million. Its sales and marketing expenses increased 103% to $113.2 million during the quarter. Its G&A expenses climbed 31% to $50.2 million and R&D expenses rose 313R to $12.4 million year-over-year.

“While we generally target running our business while producing Year One cash, our reported GAAP cash flow is typically negative in a given period owing largely to the difference in timing of investing and financing cash flows. As we consume cash in the development and working capital investment for each new installation, we often will not receive the entire projected project financing for a few quarters subsequent to the installation,” according to SolarCity.

SolarCity ended the quarter with $489.1 million in cash, cash equivalents, and short-term investment. Its cash and cash investments dropped $86.7 million due to the differential in timing if investing and financing cash flow.

The company said its total investing cash outflows were $380 million and total operating cash outflows were $140.6 million. Its financing cash flows were $491.9 million. Its estimated financing receivables were around $660 million by the end of the quarter.

Solar panel installations

Solar City reported that it installed 189 MW of solar panels during the quarter, higher than its 180 MW guidance. During the previous quarter, the company installed 153 megawatts of solar panels.

Looking forward, SolarCity expects its solar panel installations by 89% to 260 MW during the third quarter.