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.

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