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Why Did Sunrun’s Stock Price Surge after Its 3Q16 Results?

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Earnings announcement

Sunrun (RUN) announced its 3Q16 earnings results on November 10, 2016, after market hours. In this series, we’ll analyze the company’s 3Q16 results in detail, compare the results with analysts’ expectations, and analyze the factors behind any deviations.

We’ll also have a look at management’s guidance and analysts’ expectations for 2016. We’ll conclude the series with analysts’ outlook for Sunrun.

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Sunrun’s stock reaction

Sunrun posted strong operational performance in 3Q16. The company reported EPS (earnings per share) of $0.16, compared to analysts’ consensus EPS estimate of -$0.20.

During the quarter, Sunrun experienced strong operational performance, a positive business outlook, and upgraded fiscal 2016 mW (megawatts) deployed guidance on the backdrop of challenging market conditions. These factors helped boost the company’s stock price nearly 8% after its 3Q16 results were released. On November 11, 2016, Sunrun’s stock price closed at $5.11 compared to its previous day’s closing price of $4.71.

Peer performance

On November 11, 2016, Sunrun’s peers SunPower (SPWR) and SolarCity (SCTY) rose nearly 3% and 1%, respectively. However, Vivint Solar (VSLR) stock closed nearly unchanged.

The Guggenheim Solar ETF (TAN), which tracks the broad-based solar market, closed down nearly 1% during an intraday trading session on November 11, 2016.

 In the next part of this series, we’ll look at Sunrun’s key operating metrics in 3Q16.

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