uploads/2017/11/isp-3.png

Why Vivint Solar Stock Fell after 3Q17 Results

By

Updated

Earnings announcement

Vivint Solar (VSLR) reported its earnings results for the quarter ended September 30, 2017, on November 7, 2017, after market hours. In this series, we’ll review Vivint Solar’s 3Q17 results in detail and compare them with analysts’ expectations. We’ll also look into VSLR’s primary operating metrics in 3Q17 and conclude the series with an outlook for the company.

Stock price reaction

Vivint Solar reported a solid third quarter in 2017. In 2016, the company witnessed a decline in earnings as a result of a failed merger with SunEdison. The company posted $75.1 million in revenues in 3Q17, up by 82% on a YoY (year-over-year) basis. VSLR has MW (megawatt) bookings of 53 MW.

However, for 3Q17, Vivint Solar reported an adjusted loss per share of $0.33 against analysts’ consensus estimate of a $0.30 loss per share. On November 8, 2017, Vivint Solar stock closed nearly 3.8% below its previous closing price of $3.9 on November 7.

Peers’ performance

Solar energy stocks didn’t fare well during most of 2H15 and fiscal 2016. However, the sector has been performing well so far in 2017. Canadian Solar’s (CSIQ) stock price has risen nearly 46% YTD (year-to-date), while First Solar (FSLR) rose a remarkable 92%.

On November 8, 2017, stock prices of Canadian Solar (CSIQ) rose marginally by 0.6%, while First Solar (FSLR) and SunPower (SPWR) rose 1.4% and 1.5%, respectively. JA Solar (JASO) stock rose nearly 2.7% during the intraday trading session. Guggenheim Solar ETF (TAN) was up marginally by nearly 0.8% during the intraday trading session. TAN tracks the solar market.

In the next part of this series, let’s go through the operational performance of Vivint Solar in 3Q17.

More From Market Realist