Stocks of SolarCity Corp. has been witnessed to plunge by 33.59% in the after hour trading on Tuesday. The stock debacle takes place after the solar energy system installer fall behind its fourth-quarter growth targets. SolarCity has also forecast for a weak first quarter in 2016 due to the incentive slashing by Nevada regulators.
The US pioneer in rooftop solar system installer has been able to deploy 272 megawatts (MW) of solar panels during its fourth fiscal quarter. Achievement appears behind its earlier forecast for 280 to 300 MW, reports CNBC.
SolarCity has announced the disappointing fourth quarter results after closure of the regular trading in Wall Street. Its shares have tumbled by $8.85 to $17.50 during the after hours trading, according to a report published in The Buffalo News.
Shareholder attributed net income for the quarter ended on December 31 is $4.6 million or 4 cents. The solar system provider has posted loss of $3.6 million or 4 cents per share a year back. SolarCity itself has expected a loss of $2.55 to $2.65 per share against analysts' predictions for a loss of $2.36 per share, reports Reuters quoting Thomson Reuters I/B/E/S.
On adjustment basis, SolarCity has recorded a loss of $2.37 per share against analysts' prediction for a loss of $2.59. Revenue has increased 61% to $115.5 million, also exceeding analysts' estimation for $105.6 million. Share price of SolarCity has jumped from $24 in mid November to $59 in mid December. The price spiral has taken place since the Federal government has extended a key tax credit for the solar industry. But scaling back incentives by the Nevada regulators for the solar industry has again caused debacle in share prices. The investors have feared that more states may follow the trait. Moreover, the slide in oil prices has disheartened the investors towards renewable energy stocks. The ongoing quarter is also expected to be soft with installations rising by 18 percent to 180 megawatts. The higher than usual seasonal slowdown has been analyzed to stem from its pullout in Nevada. The solar plant enterprise has installed 23 MW of new solar capacity during the fourth quarter. SolarCity and other residential solar installers have pulled out of Nevada due to the new rules imposed by the state utility regulators. The new laws have made solar less attractive in the state. However, the slow start won't affect growth since it eyes to install 1.25 gigawatt (GW) power producing new solar plants this year. The expectation matches with its earlier predictions and accounts for a 43% increase in production compared to 870 MW capacity installed in 2015.
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