SCTY piece, reports Thurs AC
By Claudia Assis , MarketWatch 16:12 et
Installer shows investors it can tap cheap funding
- Claudia Assis ; 415-439-6400; AskNewswires@dowjones.com
SAN FRANCISCO (MarketWatch) -- SolarCity Corp. is expected to report second-quarter results after the market closes on Thursday, and investors expect the solar-power installer to widen its quarterly loss.
SolarCity (SCTY) is still a Wall Street favorite, however, with most investment banks that cover the stock rating it a "buy."
SolarCity last month pushed through its third and largest debt deal, selling asset-backed securities worth $201.5 million on better terms than the prior sales -- and showing Wall Street it can access low-cost financing.
The company, which is the U.S.'s top residential solar installer, also won accolades in June when it said it bought solar-panel maker Silevo Inc.
Analysts are waiting to hear SolarCity elaborate on its capital expenditure goals for the next few months. The company has said Silevo's planned solar-panel factory would be followed by one or more larger plants.
Here's what to expect:
Earnings: Analysts surveyed by FactSet expect SolarCity to widen its second-quarter net loss to $73.3 million , or 99 cents a share, compared with a loss of 31 cents a share a year ago.
Revenue: Sales are seen at $63.2 million , from $37.9 million in the second-quarter of 2013.
Stock reaction: Shares of SolarCity are up 68% in the past 12 months, and 23% so far this year. Momentum has held, and the company has gained 30% in the last three months.
What to watch for: Wall Street will be watching closely for updates on any cost reduction plans. Analysts also expect SolarCity to elaborate on its goals for Silevo, and more on the timing of the proposed solar-panel plant, which would located in upstate New York .
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