Rooftop solar provider
Sunnova Energy International
released its second-quarter financial results after Wednesday’s close, missing Wall Street estimates sales and earnings estimates, sending shares lower.
Despite the bad headline news, there may have been a silver lining or two for investors.
Sunnova
(ticker: NOVA) reported a per-share loss of 76 cents and positive adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, of $28.1 million from sales of $166.4 million.
Wall Street was looking for a per-share loss of 42 cents and adjusted Ebitda of $44.5 billion from sales of about $196 million. A year ago, Sunnova reported a 36 cent per-share loss and Ebitda of $39.7 million from sales of $147 million.
Sales grew in the second quarter of 2023, but lower sales to dealers and other partners is one reason revenue missed expectations.
Results look light, but investors may be feeling hopeful: Sunnova left its full-year guidance unchanged. The company expects to generate about $245 million in adjusted Ebitda in 2023, while Wall Street currently projects about $233 million.
Sunnova also raised its customer acquisition guidance slightly. The company says it added about 39,000 new customers in the second quarter, up from 30,100 added in the first quarter. For the full year, Sunnova now expects to add between 135,000 and 145,000 customers—up from April’s estimate which predicted somewhere between 125,000 and 135,000. The new guidance implies that Sunnova will add a combined 71,000 customers in its third and fourth quarters.
“We are rapidly achieving scale as evidenced by another record number of customers placed into service in the second quarter,” said CEO William Berger in a news release. “This impressive customer growth is a testament to our commitment to providing exceptional service and meeting the needs of our expanding customer base.”
The total customer count now stands at 348,600 as of June 30.
Baird analyst Ben Kallo called results mixed in a Wednesday evening report. He cited the customer additions as a positive. His negative was sales to dealers and partners dropped 51% year over year due to declining prices. Buyers don’t like to buy now if prices are going to be lower tomorrow.
He still likes the stock for the long run, rating shares Buy. Kallo’s price target is $44 a share.
Shares were down 7.8% in after hours trading, at $18.91 apiece. Sunnova stock, which finished 1% lower in regular trading, is up about 5% over the past 12 months. The
S&P 500
and
Nasdaq Composite
are up about 14% and 17%, respectively.
Management will host a conference call at 8 a.m. Eastern time on Thursday morning to discuss earnings. Investors and analysts will want to hear more about sales growth and cost management on the call.
Write to Al Root at [email protected]
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