Analysts Expect Vivint Solar’s Revenue to Increase in 2Q16



Vivint Solar’s revenue estimate

Vivint Solar (VSLR) reported about $17.2 million in consolidated revenue for 1Q16 and $16.1 million for 2Q15. Analysts estimate that the company will report revenue of $25.0 million in 2Q16. This is almost a 45% increase on a QoQ (quarter-over-quarter) basis. However, the estimated 2Q16 revenue is about 55% higher than 2Q15 revenue.

Regulatory uncertainty surrounding the net metering system in Nevada had a negative impact on the company’s growth in 4Q15 and 1Q16. This also impacted Vivint Solar’s peers Sunrun (RUN) and SolarCity (SCTY). The grandfathering of the net metering system in Nevada led to the market exit of Vivint Solar and its peers. However, SunPower (SPWR) didn’t exit the market.

With resolved regulatory issues and expected increase in solar (TAN) energy system installations, analysts anticipate an increase in Vivint’s 2Q16 revenue. This is in line with Vivint Solar’s fiscal 2016 guidance.

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Fiscal 2016 guidance

Vivint Solar installed 55 MW (megawatts) of solar energy systems in 1Q16. For 2Q16, the company has an MW installation guidance of 60 MW. For fiscal 2016, Vivint Solar has an MW installation guidance of 260 MW.

As we’ve already seen, the company reported its total cost per watt at $3.34 for 1Q16. Moving ahead, VSLR expects to reduce its installation costs. The company expects its total cost per watt to be $2.85–$2.95 for fiscal 2016.

In the next part of this series, we’ll take a closer look at Vivint Solar’s 2Q16 EPS (earning per share) estimates.


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