Vivint Solar Burned On Widening Q4, 2015 Losses In SunEdison’s Wake
Vivint Solar ( VSLR ) stock combusted Tuesday after the No. 3 residential installer reported mixed Q4 earnings results, underperforming an equally blended Q4 for Chinese solar panel-maker JA Solar ( JASO ). Vivint Solar’s late Monday report comes a week after the company scrapped its sale to SunEdison ( SUNE ), which, according to a Vivint 8K filing, likely couldn’t afford to close the deal as it faces an ongoing liquidity investigation. In midday trading on the stock market today , Vivint Solar stock was down 12%, near 3.50 and touching an all-time low for the fourth straight trading day. JA Solar stock, meanwhile, was down 4%, near 8.75. JA Solar reported before the open Tuesday. SunEdison stock also fell, sitting down nearly 3% midday Tuesday. Collectively, IBD’s 21-company Energy-Solar industry group was down 1.5%. The group ranks No. 48 out of 197 groups tracked. Vivint Reports Widening Losses For Q4, Vivint Solar reported a 132% year-over-year sales jump to $16 million. But losses per share ex items deepened to 50 cents vs. 36 cents in the year-earlier quarter. Two analysts polled by Thomson Reuters expected a 71-cent loss per share and $19.3 million in sales. Vivint Solar booked 80 megawatts and installed 59 MW during Q4, up a respective 56% and 17% vs. the year-earlier quarter. Cumulative installations reached 68,527, including a 23% year-over-year bump to 8,411 during the quarter. For the year, Vivint Solar’s $64.2 million in sales and a $2.39 per-share loss ex items missed the consensus expectations for $68.2 million and a loss of $1.83, respectively. Sales grew 154%, but losses deepened from $1.99. The company didn’t provide current-quarter guidance. Analysts are expecting $16.3 million and a 66-cent per-share loss ex items. Sales would grow 71%, but losses would widen from 57 cents in the year-earlier quarter. JA Solar Guides Shipments Up Before the open Tuesday, JA Solar reported $709.3 million (RMB 4.6 billion) in sales and 49 cents (RMB 3.14) earnings per American Depositary Share ex items, up 28.5% and 81.5%, respectively, on a year-over-year basis. Sales topped the consensus of the two analysts for $683.3 million (RMB 4.5 billion) and JA Solar’s earlier views for $680 million to $710 million (RMB 4.4 billion to RMB 4.6 billion). But EPS missed Wall Street’s expectation for 68 cents. JA Solar topped its earlier guide to 1.32 gigawatts to 1.35 GW shipped, with 1.366 GW shipped during Q4. For the year, JA Solar shipped 4 GW, up 29% and topping guidance for 3.92 GW to 3.95 GW. JA Solar guided to 1 GW to 1.1 GW in current-quarter shipments, which would be up 54% at the midpoint. For the year, JA Solar sees 5.2 GW to 5.5 GW in shipments, up 30%-37.5% vs. 2015. The company doesn’t provide financial guidance. The consensus expects $421.7 million (RMB 2.75 billion) in sales and 20 cents (RMB 1.30) earnings per ADS ex items for the current quarter, up 9% and 53%, respectively. For the year, analysts model $1.65 (RMB 10.74) earnings per ADS minus items on $2.26 billion (RMB 14.68) in sales, both up 8%.