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Sunrun (RUN) Q3 Earnings Miss Estimates, Revenues Up Y/Y

Zacks Equity Research

Sunrun Inc. RUN reported third-quarter 2019 adjusted earnings of 23 cents per share, which missed the Zacks Consensus Estimate of 27 cents by 14.8%. However, the bottom line rose from a loss of 2 cents per share in the prior- year quarter.

Revenues

Sunrun’s revenues of $215.5 million in the quarter surpassed the Zacks Consensus Estimate of $207.5 million by 3.9%. Revenues also rose 5% from the year-ago quarter’s $204.9 million.

Operational Highlights

Total operating expenses were $275.9 million in the third quarter, up 20.7% year over year. Operating expenses in the reported quarter grew on escalated costs of customer agreements and incentives, high costs of solar energy systems and product sales, increased sales and marketing expenses, higher general and administrative costs, and elevated research
and development expenses.

Interest expenses were $43.9 million, up approximately 27.3% on a year-over-year basis.

Total cost of revenues was $159.4 million, increasing 14% year over year.

Key Highlights

In the reported quarter, Megawatt (MW) deployed grew 7% to 107 MW from 100 MW in the third quarter of 2018.

Creation cost per watt was $3.28 in the third quarter of 2019 compared with $3.34 in the year-ago quarter. Net Present Value (NPV) created in the quarter was $79 million, reflecting an 8.1% year-over-year decline from $86 million in the third quarter of 2018.

Sunrun’s net earning assets as of Sep 30, 2019, were $1.4 billion, up $48 million or 3% from the prior-year quarter.

The company’s customer base expanded 24% year over year to 271,000.

Sunrun Inc. Price, Consensus and EPS Surprise

Sunrun Inc. Price, Consensus and EPS Surprise
Sunrun Inc. Price, Consensus and EPS Surprise

Sunrun Inc. price-consensus-eps-surprise-chart | Sunrun Inc. Quote

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Financial Performance

Sunrun had $324.7 million of cash, as of Sep 30, 2019, up from $226.6 million at the end of 2018.

Net cash outflow from operating activities was $106.1 million at the end of the third quarter compared with $40.7 million used for operating activities in the year-ago quarter.

Total recourse and non-recourse debt, net of current portion, was $2,015.9 million at the end of third-quarter 2019 compared with $1,713.4 million as of Dec 31, 2018.

Q4 Guidance

For the fourth quarter of 2019, Sunrun expects deployments of 115-118 MW.

Zacks Rank

Sunrun currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

SunPower Corp. SPWR reported adjusted earnings of 22 cents per share in third-quarter 2019. The Zacks Consensus Estimate was a loss of a penny. The company had incurred a loss of 29 cents per share in the year-ago quarter.

Enphase Energy, Inc. ENPH reported third-quarter 2019 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents by 20%. The bottom line also improved a massive 650% from 4 cents reported in the prior-year quarter.

First Solar Inc. FSLR reported third-quarter 2019 adjusted earnings of 29 cents per share, missing the Zacks Consensus Estimate of $1.06 by 72.6%. The reported number, however, grew from the prior-year quarter’s loss per share of 18 cents.

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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
 
Sunrun Inc. (RUN) : Free Stock Analysis Report
 
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SunPower Corporation (SPWR) : Free Stock Analysis Report
 
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