What to Expect From SolarCity Earnings

Energy

Published: February 18, 2015 11:40 am

SolarCity Corp. (NASDAQ: SCTY) will report its fourth-quarter financial results Wednesday after the markets close. Thomson Reuters has consensus estimates of -$1.27 in earnings per share (EPS) on $71.75 million in revenue. In the fourth quarter of the previous year, the company reported -$0.46 in EPS and revenue of $47.30 million.

The company has come back from recent lows in mid-January for a couple of reasons. First, oil went back above $50, which matters when many investors consider alternative energy a leveraged bet on fossil fuel prices. Then the new 2016 budget from President Obama added some help for solar and alternative energy as well.

SolarCity saw a drop of 28.7% in short interest in the two-week period to January 30. Some 10.3% of the stock, or 3.9 million shares, are short, and days to cover fell to two.

The company had a couple of analysts make calls on it in January. Raymond James reiterated a Positive rating for SolarCity, though no price target was listed with this call. Its previously listed price target was $75.00. Canaccord Genuity had a Buy rating and lowered its price target to $64.00 from $87.00.

Over the fourth quarter, the 50-day moving average acted as strong resistance. However, at the beginning of February, SolarCity shares crossed over that moving average and they are currently testing the 200-day moving average. The 50-day moving average is $52.34 and the 200-day moving average is $58.36.

ALSO READ: 4 Clean Technology Stocks to Buy as Huge Growth Continues

Overall, more growth appears to be coming. Bloomberg reported that U.S. investment in clean energy rose from $48 billion in 2013 to $52 billion in 2014. Only China sunk more investment into clean energy last year, $89 billion in 2014. Globally, clean energy investment rose to $310 billion, the second highest total on record, behind only 2011’s $318 billion.

In anticipation of earnings, shares of SolarCity were flat at $58.21 midday in Tuesday’s trading session. The stock has a consensus analyst price target of $84.89 and a 52-week trading range of $45.79 to $88.35.

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.