- David Einhorn can't be pleased: SunEdison (SUNE) is now down 34% since posting mixed Q2 results and reiterating its full-year system delivery guidance on Thursday morning. Fellow U.S. solar play SolarCity (SCTY) is down 15% over that same span, though its overlap with SunEdison is limited outside of Vivint Solar (about to be acquired by SunEdison).
- Credit Suisse has defended SunEdison amid the plunge, arguing there's “a fundamental disconnect between the stock performance and the ... stellar execution of the organic project development business that exceeded expectations on all metrics, ... increased disclosure to pacify liquidity concerns, and the company making the (right) decision to ensure accretive drop-down economics.”
- During the earnings call (transcript), management was peppered with questions about solar/wind project ROIs, as well as future capital needs and SunEdison's ability to maintain its breakneck growth rate (the result of both internal financing/construction work and M&A). CFO Brian Wuebbels reiterated SunEdison's internal project development ops (i.e. the DevCo) expect to reach cash flow breakeven in 2016, and noted recent capital raises were oversubscribed.
- SunEdison's Q2 results, guidance/details