Shares of solar energy company Sunnova Energy International (NOVA -1.71%) jumped as much as 21.1% in trading on Thursday after the company reported third-quarter 2023 financial results that topped expectations. The stock closed up 16.3% today.

Sunnova's surprising quarter

Revenue jumped to $198.4 million from $149.4 million a year ago and net loss attributable to shareholders was down slightly to $63.1 million, or $0.53 per share. But it was guidance that investors were most focused on today. 

For the full year 2023, management expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be $235 million to $255 million, which was affirmed from previous guidance. But in 2024 it expects adjusted EBITDA to jump to between $350 million and $450 million. 

Results are helped by the start of $145 million in tax credit transfers, which was allowable under the Inflation Reduction Act and accounted for $14.4 million in sales during the quarter. 

Solar slowdown not as bad as it seems?

Solar energy stocks have been hit hard this year by higher interest rates and rising costs for labor, which were supposed to hurt earnings this year. But Sunnova seems to be escaping most of the pain and is now projecting a very good year in 2024. 

If these results hold true across the industry we could see a recovery in solar stocks before the year is over, but for now this report is only impacting Sunnova, which looks like an outlier in residential solar.