SolarCity beats by $0.10, beats on revenue


SolarCity (SCTY): Q4 EPS of -$0.46 beats by $0.10.

Revenue of $47.30M (+87.2% Y/Y) beats by $2.03M.

Shares +1.23%. AH

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Comments (27)
  • smolloy1010
    , contributor
    Comments (20) | Send Message
     
    This is great news, why is the stock falling in AH? I simply don't understand investing these days versus the old days.
    18 Mar 2014, 04:19 PM Reply Like
  • papita
    , contributor
    Comments (427) | Send Message
     
    try understanding the difference. in the old days you had to earn money to have a higher stock price. today, all you need is the hype surrounding a stock like solar city and a boss like elon musk. with the run this stock has had, you shouldn't complain. take a look at the market cap vs. the revenue. you got nothing to bi-ch about.
    18 Mar 2014, 04:45 PM Reply Like
  • cmnsnse
    , contributor
    Comments (878) | Send Message
     
    Papita -- I think many people are seeing Elon Musk as the modern day Edison, Ford, and Rockefeller wrapped into one... those men's businesses went on to transform industries, make trillions of dollars, and change the way we all live our lives today. For those that see Elon joining this group (and potentially surpassing them), investing early is a prudent financial decision. I'm guessing the "old days" of investing didn't include such a "perfect storm" businessman like Elon (and family). Well, today we do, and much of that investing environment includes tremendous volatility, but rock solid appreciation over time...
    18 Mar 2014, 04:59 PM Reply Like
  • aow
    , contributor
    Comments (151) | Send Message
     
    SCTY isn't TESLA. Musk's a chairman not an officer in SCTY. And considering the run up the stock's had, including a bounce of nearly 5% during hours, hard to complain about the stock falling AH. The report was decent, but nothing mindblowing.
    18 Mar 2014, 05:46 PM Reply Like
  • embryorambo
    , contributor
    Comments (282) | Send Message
     
    SCTY is pretty much a roofer with a financing arm. really not that incredible of a business and their cost of capital is higher then their return on capital. I would not get that excited about buying a share that has a good possibility of losing 80% of its value in the next 5yrs
    18 Mar 2014, 06:00 PM Reply Like
  • awakeinwa
    , contributor
    Comments (696) | Send Message
     
    they are establishing an unparalleled first mover advantage.
    18 Mar 2014, 07:02 PM Reply Like
  • cmnsnse
    , contributor
    Comments (878) | Send Message
     
    Just look at the guidance... if they are only going to install 82 MWs(max) in Q1, imagine the tidal wave of installs that has to happen to reach their highly confident 500MWs(median) goal... Q2-Q4 will have to average 139MWs... those numbers will smash all internal records by a wide margin... got to read between the lines sometimes... SCTY is a big winner this year. Going to see a lot more whip-saw price action to come with that as well, probably between 80-150 through start of 2015...
    18 Mar 2014, 04:39 PM Reply Like
  • dangriffin
    , contributor
    Comments (2) | Send Message
     
    this stock is a buy buy buy to me. I don't understand why scty is not a 200.00 a share.
    18 Mar 2014, 05:27 PM Reply Like
  • Illuminati Investments
    , contributor
    Comments (9652) | Send Message
     
    Is this thickly veiled sarcasm? The stock lost almost 50 cents a share in what was considered to be a "good" quarter (will lose 70-80 cents next quarter) and at $200 would be trading at 65 times this year's overly optimistic revenue estimates.
    18 Mar 2014, 08:51 PM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    Amen~! Watch n' See, tmrwAM & thru EndOfWeek, scty wll pop!!! Lets-get-upto 100.00 before 200.00 LOL!!
    18 Mar 2014, 10:13 PM Reply Like
  • dangriffin
    , contributor
    Comments (2) | Send Message
     
    i've been in the stock market for 15 years. i'm self employed and have a degree in hotel restaurant management. SCTY in a great stocked. I also been in construction also. for 30 years
    18 Mar 2014, 05:27 PM Reply Like
  • Holthusen
    , contributor
    Comments (702) | Send Message
     
    Thank you for your excellent resume.
    19 Mar 2014, 07:53 AM Reply Like
  • cmnsnse
    , contributor
    Comments (878) | Send Message
     
    Solarcity has brand name recognition right now, which is a major differentiator in an industry where most companies are hard to distinguish on the installation side... however, many long investors are keenly aware of Elon's most important connection to Solarcity which is through energy storage supply(not just being the COB). Energy storage is what will ultimately separate Solarcity from not just other solar installation companies, but also all other utility company on the planet. Sometimes you just got to look below the surface to see this is just the tip of the iceberg...
    18 Mar 2014, 06:27 PM Reply Like
  • mikehart
    , contributor
    Comments (73) | Send Message
     
    cmnsnse - Agree with your comments. Another great quarter. SCTY continues to execute from both an operational and financial perspective. I firmly believe this company has an amazing future ahead of it and storage will be a major differentiator, especially as the residential pilot for storage moves to be a standard offering. They benefit significantly from the TSLA relationship in that regard and the economies of scale that the gigafactory will bring should help them in that regard.

     

    The PPS is a little rich at these levels but I am long term hold on this company. I am looking forward to adding to my position if we ever get a decent correction in the market.
    18 Mar 2014, 08:56 PM Reply Like
  • thebig1five
    , contributor
    Comments (2) | Send Message
     
    Thank you for sharing your credentials with us.
    18 Mar 2014, 10:04 PM Reply Like
  • tstreet
    , contributor
    Comments (1035) | Send Message
     
    When someone can explain how SCTY will ever make money, I will consider buying the stock.
    18 Mar 2014, 10:42 PM Reply Like
  • cmnsnse
    , contributor
    Comments (878) | Send Message
     
    They raise capital now to build out all the solar installations. A vast majority of the installations are 20 year ppa/lease. These are long term, consistent, predictable monthly payments (thus, loss on current balance sheet) Now multiply these 20 year contracts by nearly 1million customers, then your monthly payments accumulate enough to pay off early capital installation investment. Then, the reoccurring revenue begin to become massive amounts of profit and free cash flow. Solarcity expects to achieve 500m in annual free cash flow starting mid 2018, so somewhere before 2018, I'm thinking they will not need to raise outside capital to bankroll growth.... For the rest of its existance...
    18 Mar 2014, 11:50 PM Reply Like
  • Illuminati Investments
    , contributor
    Comments (9652) | Send Message
     
    How do you know these supposedly lucrative leases won't become huge liabilities after solar tax credits expire in 2017 and/or the price of solar panels continues to come down?

     

    Either their current leases will become less valuable as they lose government subsidies, or they will face increased competition from people buying lower priced solar systems outright.
    19 Mar 2014, 03:57 PM Reply Like
  • mikehart
    , contributor
    Comments (73) | Send Message
     
    Illuminati - The tax credit applies to the installation cost of a system. Losing it would effectively increase the cost of new installations but would not impact existing contracts.
    20 Mar 2014, 02:00 PM Reply Like
  • Illuminati Investments
    , contributor
    Comments (9652) | Send Message
     
    True, the tax and accelerated depreciation incentives form a big chunk of the total system value. If they go away or are reduced then there is much less reason for JV investors to contribute the up-front capital that reduces the cost of installations, meaning they'll have to start funding it themselves, raising their cost of capital.

     

    At that point the initial costs will go up much more than the retained net value of the cash flow that their existing leases are supposedly starting to throw off. Basically, installation growth will slow as they'll have to charge more up front and thus have an even longer wait before they start to generate meaningful cash flows to shareholders.
    20 Mar 2014, 03:17 PM Reply Like
  • rogerenroute
    , contributor
    Comments (233) | Send Message
     
    Solarcity has a business model thats about as innovative as hot water tank leasing. Once homeowners figure out that just like a hot water tank you can buy the solar panel, solarcity is done. I think JASO which has had the same stock growth as SCTY this year is going to be a great long term stock like Tesla. JASO had Q4 revenues of 357 million (7X SCTY). JASO has leadership in innovation and quality that evolved from being the worlds largest solar cell producer. JASO is my pick as the solar sunrise stock of 2014.
    18 Mar 2014, 10:51 PM Reply Like
  • BudH
    , contributor
    Comments (718) | Send Message
     
    People often lease when they could buy. Most new BMWs are leased, not sold. The monthly outlay is easier than the whole nut upfront, and you don't have to worry about putting too many miles on the solar panels. You want solar on your roof to impress the neighbors and your friends? Sign the lease and SCTY will take care of you.
    19 Mar 2014, 12:50 AM Reply Like
  • rogerenroute
    , contributor
    Comments (233) | Send Message
     
    With a 25% drop in the SCTY stock value in the last couple of weeks it doesn't look like there is a great deal of confidence in the business model. You have to wonder if there isn't also a little too much nepotism as well in SCTY to clean house very well on the management. Once you are tired of losing your equity on the SCTY family run nosedive, try looking at JASO to recoup your losses. JASO and SPWR are the two main solars I invest in because they are leaders in solar conversion efficiency and are actually turning a profit.
    21 Mar 2014, 01:10 PM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    SPWR or FSLR NXT WK??
    21 Mar 2014, 01:22 PM Reply Like
  • cmnsnse
    , contributor
    Comments (878) | Send Message
     
    I've been invested since IPO day, and 25% drop has pretty much happened after every quarterly report. Nothing out of the norm here. Company just made two huge aquisitions late last year that will return big numbers Q2 and beyond... The company has never been more sound and dominant. These mood swings come with the wild growth, so not for light hearted. But for those that "get it" will reap big rewards. This is a great company, can't go wrong as a true investment...
    21 Mar 2014, 10:38 PM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    WHICH CO? ALL BIG 3 SOLAR INSTALLERS??
    23 Mar 2014, 11:38 AM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    SCTY, only rarely touches mid-50s! Next time, 50pt will be a result of a 100pt stock split..
    25 Mar 2014, 01:25 PM Reply Like
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