SolarCity Results Top Estimates; Outlook Weak - Update

(RTTNews) - SolarCity Corp (SCTY), a provider of solar energy systems, said Tuesday it returned to a profit for the fourth quarter, helped by solid revenue growth, a tax benefit and higher losses attributable to non-controlling interests. Also the company's adjusted loss came in better than Street analysts' estimates and revenue surpassed expectations.

Moving forward, the company forecasts first-quarter loss wider than Street analysts' current estimates. SolarCity shares were down more than 2 percent in after-hours trade on the Nasdaq.

SolarCity engages in the designs, sells and leases solar energy systems to residential and commercial customers, and government entities in the U.S.

The San Mateo, California-based company posted fourth-quarter net income to stockholders of $26.7 million or $0.28 per share, compared with a loss of $8 million or $1.30 per share last year.

Net results for the recent quarter excludes $66 million of loss attributable to noncontrolling interests and redeemable noncontrolling interests.

Excluding items, adjusted loss for the quarter to controlling interest was $39.8 million or $0.46 per share, compared with a loss of $0.55 per share a year ago.

On average, six analysts polled by Thomson Reuters expected a loss of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter surged to $47.3 million from $23.8 million in the prior year. Ten analysts had a consensus revenue estimate of $45.3 million.

The company added 103 megawatts (MW) of new residential and commercial solar systems during the quarter, up from 48 MW last year.

Also during the quarter, the SolarCity recorded a tax gain of $24.7 million.

Results were largely offset by expenses that climbed to $65 million from $36.6 million in the same quarter of last year, the company said.

For the first quarter, SolarCity projects adjusted loss of $0.80 to $0.70 per share. It expects operating lease and solar energy systems incentive revenue of $27 million to $29 million and solar energy systems sale revenue of $23 million to $27 million

Analysts expect a loss of $0.50 per share on revenue of $45.22 million for the quarter.

The company expects to deploy between 78 MW and 82 MW in the first quarter.

SolarCity stock closed Tuesday at $77.10, up $3.40 or 4.61%, on a volume of 4.3 million shares on the Nasdaq. In after hours, the stock dropped $1.60 or 2.08% at $75.50.