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What to Expect from SolarCity’s 3Q16 Earnings

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Series overview

SolarCity (SCTY) is expected to announce its 3Q16 earnings on October 27, 2016, after market hours. In this series, we’ll look at analysts’ expectations for SolarCity’s 3Q16 earnings. We’ll discuss factors that led analysts to arrive at these expectations. We’ll also look at the company’s 2016 guidance and the key indicators that investors should watch in SCTY’s upcoming earnings release.

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SolarCity’s stock performance

From its 2Q16 earnings release on August 9, 2016, until October 21, 2016, SolarCity’s stock price fell nearly 19%. Stock prices of other major downstream solar companies such as Vivint Solar (VSLR) and SunPower (SPWR) followed a similar trend during the same period.

Vivint Solar stock lost nearly 7% after SolarCity’s 2Q16 results through October 21, 2016. SunPower stock lost nearly 39%. However, Sunrun (RUN) rose nearly 14%. Sunrun’s better-than-anticipated 2Q16 results helped its stock outperform peers.

The Guggenheim Solar ETF (TAN), which tracks the broad-based solar market, lost nearly 7% during the same period.

Post-2Q16 developments

In 3Q16, SolarCity expanded its services and operations in Austin, Texas. The expansion is a part of the company’s recently announced solar loan program and could have a positive impact on SCTY’s MW (megawatt) bookings moving forward. Also, SCTY created an aggregate of more than $647 million to finance its solar projects for homeowners and small businesses in 3Q16.

On September 12, 2016, SCTY announced that it had raised $305 million through its second cash equity transaction as a part of monetization of its underlying cash flows.

Next, let’s see how analysts rate SolarCity.

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