Boston, MA 05/08/2014 (wallstreetpr) – SolarCity Corp (NASDAQ:SCTY) is still a loss-making business. However, unlike other loss-making companies, shares here go up even when a loss is reporting. And that is all because of the company’s prospects that are more important to investors than quarterly results.
The company designs and installs solar energy systems for residential and commercial customers. The company also leases out its solar energy systems. Though the company has a footprint in the commercial solar energy business, its main focus is on residential installations because of the huge opportunities in the segment. As such, analysts agree that the company is on the right growth direction because its presence in the market already overshadows its peers. On that note, analysts believe that as much as competition is likely to cause pressure for the company but that pressure will be minimal.
The climate change has not only seen energy industry regulators piling pressure on energy companies to generate a certain percentage of their power from renewable sources like solar, but has also seen residential customers more confident about alternative power, and solar is among those highly touted alternatives. In any case, the fact that solar energy can be harnessed and stored gives residential customers the opportunity to reduce their energy costs. As such, the excitement around solar energy system positions SolarCity Corp (NASDAQ:SCTY) on solid growth path.
Meeting solar installation demand
The company predicts a big demand for solar installation especially in the residential segment. Therefore, the company expects to deploy about 110-megawatt (MW) of solar panels in the current quarter. That compares with 82-MW deployed in 1Q2014.
For the full-year 2014, the company guided between 500 and 550-MW. It previously guided between 475 and 525-MW for the year. The company expects to double its installation by 2015 where it expects to install between 900 and 1,000-MW of solar energy systems.
According to analysts, the company’s strategy to spread payment for its solar panels over 20 years puts it a cut above the rest.
1Q2014 revenue soar
SolarCity Corp (NASDAQ:SCTY) reported more than double increase in revenue for 1Q2014. Revenue came in at $63.5 million, rising 112 percent on a year-over-year basis. 1Q revenue was forecast at $53.4 million. The quarter also saw the company narrow its loss from $40.9 million or 54 cents per share in 1Q2013 to $24.1 million or 26 cents per share in the latest quarter.
