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 Corp. (NASDAQ:SCTY.DL) dropped 16% today after the company released earnings.
So what: Revenue was up 52% at the solar installer to $48.6 million and adjusted loss was $0.43 per share. Installations came in at 78 MW and next quarter the company expects to install another 101 MW, which were both in-line with previous guidance.
What spooked investors today was guidance of a $0.55 to $0.65 loss per share next quarter. Analysts were only expecting a $0.53 loss per share.
Now what: The per share number shouldn't concern investors all that much and installations were largely in-line with estimates. I think there are concerns to be worried about long-term, but missing earnings estimates doesn't happen to be one of them. With growth continuing at astonishing levels and retained value on the rise I think the company is performing well. The stock isn't a steal for investors and I'm concerned about the assumption lease customers will renew in 20 years, but if you were a buyer yesterday I don't see a reason to sell today.