Shares of SunRun Inc. fell in extended trading Wednesday after the residential solar-power installer and energy-storage provider reported fourth-quarter results that missed Wall Street’s expectations, making it the latest solar-industry player to take a hit from concerns about weaker demand.
The company reported a fourth-quarter net loss of $535.4 million, or $1.60 a share, compared with a $327.9 million loss — with a per-share profit of 29 cents — in the same quarter that ended in 2022. The fourth-quarter loss for last year was far deeper than the 21 cents per share forecast by FactSet.
Revenue fell to $516.6 million from $609.2 million in the prior-year quarter. Analysts polled by FactSet expected sales of $532.7 million.
In SunRun’s
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earnings release, Chief Executive Mary Powell said the company was focusing on selling higher-margin storage options and offering things like early renewals and adding more capacity to existing storage systems. She expressed optimism about the months ahead.
“Our strong sales activities and market position gives us confidence that installations will grow considerably from Q1 levels,” she said in a statement.
Still, shares fell 8.2% after hours on Wednesday.
SunRun installs solar-energy systems, in the form of panels and batteries, at people’s houses, and charges homeowners on a subscription basis.
However, higher interest rates over the past year have it more difficult to borrow money to move ahead with solar installations. California, which accounts for a big chunk of the nation’s solar usage, has cut back on incentives for rooftop solar usage.
SolarEdge Technologies Inc., which makes solar-power equipment, on Tuesday reported a big quarterly sales drop and forecast weaker sales up ahead. The company last month said it would lay off around 16% of its staff.
Shares of SolarEdge
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finished 12.2% lower during regular trading hours on Wednesday.