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SolarCity Corp Beats On Earnings [UPDATED]

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SolarCity Corp (NASDAQ:SCTY) released its latest earnings results after closing bell tonight, posting losses of 96 cents per share on $61.334 million* in revenue. Analysts had been expecting the company to post losses of 99 cents per share on $63.24 million in revenue.

GAAP net losses were 52 cents per share.

Breaking down SolarCity’s earnings

The solar panel system installer reported a record 218 megawatts booked and 107 megawatts deployed during the second quarter. SolarCity said it passed 140,000 customers in June, adding over 30,000 customers during that quarter alone. That’s a 218% increase year over year.

At the end of the quarter the company had cumulative megawatts deployed of 756 and up to $3.3 billion in nominal contracted payments remaining and a retained value of $1.8 billion. SolarCity said all of their deployed solar power systems can produce more than 1,000 gigawatt hours each year. The company’s cumulative energy contracts rose 114% year over year to 128,933. The number of cumulative customers rose 102% year over year to 141,034.

Revenue from Operating Leases and Solar Energy Systems Incentives was $43.2 million, a 110% increase year over year. The segment had a gross margin of 52%. Loss from overall operations widened from $35.5 million last year to $74.3 million in the second quarter of this year.

SolarCity offers soft third quarter guidance

For the third quarter, SolarCity expects to deploy between 135 and 150 megawatts, which is an 83% increase at the midpoint. The company projects between $50 million and $55 million in GAAP Operating Lease and Solar Energy Systems Incentive revenue. It projects between $4 million and $8 million in GAAP Solar Energy Systems Sales revenue and a GAAP gross margin of between 50% and 55% for its Operating Lease and Solar Energy Systems Incentive segment. Management projects $115 million in GAAP operating expenses and non-GAAP losses per share of between $1.10 and $1.20. That’s weak compared to analyst estimates of $1 per share in losses.

For the full year, the solar panel system installer still projects between 500 and 550 megawatts to be deployed. Next year, SolarCity expects to install between 900 and 1,000 megawatts.

*Corrects revenue amount and title.

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