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Why Sunnova Energy's Stock Jumped 8.5% on Wednesday

By Travis Hoium – Oct 27, 2021 at 5:28PM

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Sunnova announced a big EV charging partnership and earnings after the market closed on Wednesday.

What happened 

Shares of residential solar energy stock Sunnova Energy International (NOVA -3.39%) jumped as much as 11.9% in trading on Wednesday after announcing an important long-term partnership. Shares closed the day up 8.4%, but have fallen 2.8% as I'm writing after hours after the company reported earnings today. 

So what

The first piece of news was a partnership between Sunnova and ChargePoint (CHPT -2.09%), which is a leading provider of electric vehicle (EV) charging equipment. This will allow customers to make one purchase and have one installation for solar and charging, which could be good for both companies. 

Home with large solar installation on the roof.

Image source: Getty Images.

Third-quarter results have overshadowed some of the ChargePoint excitement today. The company said revenue was up 37.3% to $68.9 million and net loss improved from $64.2 million to $27.5 million, or $0.25 per share. 

Sunnova added 14,300 customers in the quarter and now has 176,900 customers. For all of 2021, management expects 55,000 to 58,000 customer additions, and 83,000 to 87,000 customer additions in 2022. That's strong growth in the solar industry and should be bullish for the industry overall. 

Now what

I think the combination of solar and chargers is a natural fit for companies like Sunnova, and the company's growth trajectory is impressive. Management's outlook for $117 million to $137 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2022 is also a solid improvement from an expected $80 million to $85 million this year. If Sunnova can continue growing and adding recurring revenue like this, the stock's strong performance could continue. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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