The key here seems to be competitive pricing pressure. Real Goods said in its earnings release that the revenue decline for installing solar energy systems more than offset the greater number of installations it performed in the second quarter. Gross margins at the company also fell, from 29.6% a year ago to 25%, again due to competitive pricing pressure.
SolarCity forecast a sharp decline in revenue for its current quarter and a larger earnings per share loss than analysts were expecting.
Real Goods also said that it planned to look for additional acquisitions, having already acquired two smaller companies. SolarCity announced yesterday that it had acquired Paramount Solar, a direct marketer of solar energy products. But if Real Goods’ experience with acquisitions is any guide, investors don’t see acquisitiveness as a solution.
Following its lackluster report, shares of Real Goods Solar are down about 9.2% at $2.17 in a 52-week range of $0.40 to $7.17.
SolarCity’s shares are down nearly 5%, a combination of the acquisition and Real Goods’ poor performance. The company’s stock is trading at $36.03 in a 52-week range of $9.20 to $52.77.
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
