Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of SolarCity (NASDAQ: SCTY ) rose more than 23% during intra-day trading Friday after the company both released key third-quarter operating metrics and significantly raised its 2014 financial guidance.
So what: In Q3, SolarCity deployed 78 megawatts of solar power products. As a result, the company still expects to achieve its previously issued fiscal 2013 guidance of deploying 278 megawatts. That brings its total number of solar contracts to 72,506, from which the company ultimately expects to receive more than $1.7 billion in contract payments over the course of their lifetimes.
But what really got investors excited today was SolarCity's fiscal 2014 guidance, which now calls for deployments of between 475 megawatts and 525 megawatts, or a year-over-year increase of 70% to 89%.
Now what: It's worth noting today's news comes hot on the heels of SolarCity's $158 million acquisition of solar-racking maker Zep Solar, which was only just announced on Wednesday and should help the company lower the cost of components required to install its products.
All things considered, when we combine that with SolarCity's impressive forward guidance, its five-year goal of reaching at least one million customers with approximately 6,000 megawatts deployed is looking more achievable by the day.
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