SolarCity Falls After Reporting Narrower Q2 Loss (SCTY)

SolarCity (NASDAQ: SCTY) released its fiscal second-quarter earnings results after the closing bell on Wednesday.

The company reported a narrower than expected loss and revenues that were ahead of analysts' estimates. Nevertheless, the stock was last trading down around 9 percent in the after-hours to $38.70 on the back of weak Q3 earnings guidance.

Management Commentary

"SolarCity delivered solid growth in its operating lease business in the second quarter, with cumulative customers, cumulative energy contracts, and estimated nominal contracted payments all close to doubling from the end of Q2 2012, while the momentum continued with a record month in residential bookings and deployments in July," said Lyndon Rive, CEO.

"Plus, Residential MWs deployed rose 144% Y/Y to drive total MW deployments to the highest quarterly rate yet at 53 MW," continued Mr. Rive. "With positive net cash flow of $19.4 million (before options/warrant exercise) and estimated nominal contracted payments remaining rising to $1.4 billion, we are building a solid platform for steady, visible cash flow in the decades ahead."

Fiscal Q2 Financial Results

The company reported a net loss of $23.89 million or $0.31 per share, compared to a loss of $25.83 million or $2.37 per share, in last year's corresponding period. This was ahead of analysts' consensus EPS estimates calling for a loss of $0.38.

Revenue in the quarter was $37.95 million, a 19 percent decline from the $46.57 million the company reported in the year ago period. This also topped Wall Street revenue expectations of $27.44 million.

Looking ahead to Q3, SolarCity guided for a loss of $0.50 to $0.60 per share. This compares to analysts' estimates calling for a loss of $0.38 in the third-quarter.

Related: Apple dominates PC sales in second-quarter.