What happened
When a company misses quarterly earnings profitability estimates, investors typically react by selling out of its stock. That isn't always the case, however, and it didn't happen on Thursday with Sunnova Energy International (NOVA +0.00%). The solar company's shares enjoyed a more than 11% price gain despite a double miss on first-quarter results.
So what
Just after market close on Wednesday, Sunnova published its figures for the quarter. These reveal that the solar company's revenue was almost $162 million, which was more than double the $65.7 million of the same period last year.
The same dynamic, unfortunately, was shown in Sunnova's net loss. This deepened considerably to more than $110 million ($0.70 per share) from the year-ago deficit of slightly over $22 million.
While the company beat on the top line, it missed analyst profitability expectations by a country mile. On average, prognosticators following the stock were modeling slightly less than $153 million for revenue but a far narrower net loss of $0.53 per share.
Sunnova is operating in a favorable environment, with its business bolstered by affordable solar solutions and a U.S. presidential administration determined to push green energy technology. In its earnings release, the company quoted CEO William Berger as adding that its "impressive customer growth at the start of the year has been powered by the unwavering consumer demand for our diverse range of energy services."
NYSE: NOVA
Key Data Points
Now what
Sunnova is entirely convinced this demand will continue to rise. As a result, it has lifted its guidance for client additions.
The company now believes it will add 125,000 to 135,000 customers this year, up from the previous estimated range of 115,000 to 125,000. This should help boost non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) to $235 million to $255 million for the year.
