Back to top

Image: Bigstock

Sunrun (RUN) Earnings Miss, Revenues Beat Estimates in Q3

Read MoreHide Full Article

Sunrun Inc. (RUN - Free Report) reported third-quarter 2018 loss of 2 cents per share, comparing unfavorably with the Zacks Consensus Estimate of earnings of 34 cents. The bottom line also deteriorated from the year-ago quarter’s earnings of 25 cents.

Revenues

Sunrun’s revenues of $205 million in the quarter surpassed the Zacks Consensus Estimate of $176 million by 16.5%. Revenues also surged 41.8% from the year-ago quarter’s $144.5 million.

Operational Highlights

Total operating expenses were $228.5 million, which increased 20% year over year. Operating expenses in the reported quarter increased on higher cost of customer agreements and incentives, high cost of solar energy systems and product sales, increased sales and marketing costs, and high research and development expenses.

Interest expenses were $34.5 million, up approximately 48.5% on a year-over-year basis.

Total cost of revenues was $139.4 million that witnessed an increase of 19% year over year.

Key Highlights

Sunrun installed a record amount of solar energy and home batteries during the third quarter and thereby witnessed more than 50% year-over-year growth in its direct business.

In the quarter, Megawatt (MW) deployed increased to 100 MW from 91 MW in the second quarter of 2018, recording a 10% increase.

Creation Cost per watt was $3.34 in the third quarter, in line with the figure reported in third-quarter 2017. NPV per watt was $1.00.

Sunrun Inc. Price, Consensus and EPS Surprise

 

Sunrun Inc. Price, Consensus and EPS Surprise | Sunrun Inc. Quote

Financial Performance

Sunrun had $242.9 million of cash, as of Sep 30, 2018, up from $202.5 million at the end of 2017.

Cash flow from operating activities was $32.6 million, up from $14.9 million a year ago.

Total recourse and non-recourse debt, net of current portion was $1,537.1 million at the end of the quarter compared with $1,273.4 million as of Dec 31, 2017.

2018 Guidance

The company expects deployments to grow 15% year over year, in 2018.

Zacks Rank

Sunrun currently carries a Zacks Rank #5 (Strong Sell).

Recent Solar Releases

First Solar Inc. (FSLR - Free Report) reported third-quarter 2018 earnings of 54 cents per share, beating the Zacks Consensus Estimate of 45 cents by 20%. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SunPower Corp. incurred third-quarter 2018 adjusted loss of 29 cents per share, narrower than the Zacks Consensus Estimate of a loss of 45 cents. The company carries a Zacks Rank #3.

Upcoming Solar Release

Canadian Solar (CSIQ - Free Report) is expected to release third-quarter 2018 results on Nov 15. The company carries a Zacks Rank #3.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


First Solar, Inc. (FSLR) - free report >>

Canadian Solar Inc. (CSIQ) - free report >>

Sunrun Inc. (RUN) - free report >>

Published in