When solar power installer and provider SolarCity Corp. (NASDAQ: SCTY) reported first-quarter earnings Wednesday evening, the company’s stock jumped 7% in after-hours trading, even after forecasting a larger net loss in the current quarter than it suffered in the first quarter. Investors are willing to trade SolarCity’s growth for profits, and the company is glittering on Thursday because of it.
SolarCity raised its installation guidance from 475 to 525 megawatts in 2014 to a new range of 500 to 550 megawatts and set initial guidance for 2015 at 900 to 1,000 megawatts. The company deployed 82 megawatts in the first quarter and has another 136 megawatts booked. The customer base grew to more than 110,000, and SolarCity still projects that it will reach 1 million customers by mid-2018.
Based on its long-term contracts (power-purchase agreements, or PPAs) the company estimates its nominal contract payments remaining at $2.5 billion, nearly double the amount at the end of the first quarter a year ago and up more than 20% sequentially.
All that is good news and caused shares to soar nearly 18% at midday on Thursday, at $56.00 in a 52-week range of $25.00 to $88.35. Investors are choosing to ignore the first-quarter earnings per share loss of $0.82 and a forecast second-quarter loss of $0.90 to $1.00 a share. There is apparently no substitute for growth.
NVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.
But if you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email below
By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you.
You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use.