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Sunrun's (RUN) Q2 Earnings Miss Estimates, Revenues Beat

Zacks Equity Research

Sunrun Inc. RUN reported loss of a penny per share in second-quarter 2019 against the Zacks Consensus Estimate of earnings of 17 cents. The bottom line also deteriorated from the year-ago quarter’s earnings of 6 cents per share.

Revenues

Sunrun’s revenues of $204.6 million in the quarter surpassed the Zacks Consensus Estimate of $189 million by 8.3%. Revenues also rose 20% from the year-ago quarter’s $170.5 million.

Operational Highlights

Total operating expenses were $267.4 million in the second quarter, up 30% year over year. Operating expenses in the reported quarter grew on escalated costs of customer agreements and incentives, high costs of solar energy systems and product sales, increased sales and marketing expenses, higher general and administrative costs, and elevated research and development expenses.

Interest expenses were $42.3 million, up approximately 32.7% on a year-over-year basis.

Total cost of revenues was $156.9 million, increasing 29% year over year.

Key Highlights

In the reported quarter, Megawatt (MW) deployed increased 13% to 103 MW from 91 MW in the second quarter of 2018.

Creation cost per watt was $3.33 in the second quarter of 2019 compared with $3.12 in the year-ago quarter. Net Present Value (NPV) created in the quarter was $95 million, reflecting a 23% year-over-year increase from $77 million in the second quarter of 2018.

Sunrun’s net earning assets as of Jun 30, 2019, were $1.4 billion, up $139 million or 11% from the prior-year quarter.

The company’s customer base grew 26% year over year to 255,000.

Sunrun Inc. Price, Consensus and EPS Surprise

 

Sunrun Inc. Price, Consensus and EPS Surprise

Sunrun Inc. price-consensus-eps-surprise-chart | Sunrun Inc. Quote

Financial Performance

Sunrun had $299.6 million of cash, as of Jun 30, 2019, up from $226.6 million at the end of 2018.

Net cash outflow from operating activities was $56.6 million at the end of the second quarter compared with $57.7 million used for operating activities in the year-ago quarter.

Total recourse and non-recourse debt, net of current portion, was $1,689 million at the end of second-quarter 2019 compared with $1,713.4 million as of Dec 31, 2018.

Third Quarter & 2019 Guidance

For the third quarter of 2019, Sunrun expects deployments of 107-110 MW.

For 2019, the company continues to expect deployments to grow 16-18% year over year.

Zacks Rank

Sunrun currently carries a Zacks Rank #5 (Strong Sell).

Recent Solar Releases

SunPower Corp. SPWR, a Zacks Rank #3 (Hold) stock, incurred adjusted loss of 22 cents per share in the second quarter of 2019, wider than the Zacks Consensus Estimate of a loss of 9 cents. The company incurred loss of a penny per share in the year-ago quarter. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Enphase Energy, Inc. ENPH, a Zacks Rank #2 (Buy), reported second-quarter 2019 adjusted earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 13 cents by 38.5%. The bottom line, moreover, improved from a penny registered in the prior-year quarter.

First Solar Inc. FSLR, a Zacks Rank #3 stock, incurred a loss of 18 cents per share in second-quarter 2019, while the Zacks Consensus Estimate for earnings was pegged at 2 cents. The reported figure, however, improved from the prior-year quarter’s loss of 46 cents per share.

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