Published on March 4th, 2015 | by Daily Station Team
Fourth-quarter Results for SolarCity Corp. (NASDAQ:SCTY)
SolarCity Corp. (NASDAQ:SCTY) is on the eve of releasing of its fourth-quarter results with expectations all over the street. The solar company will be reporting its earnings for the fiscal year 2014 on 18th February. Researchers such as Patrick Jobin and a number of colleagues suggest that the company will be able to come up with 186 megawatts (MW) during its 4th quarter and the company’s target is producing between 179 MW and 194 MW.
Therefore the analyst’s expectations falls under the company’s range. SolarCity Corp. (NASDAQ:SCTY) also has an upper hand in the California market. On the other hand, analysts anticipate a slight challenge in the company due to the unfavourable weather conditions with the uncertainty from the Salt River Utility in the northern and Arizona regions respectively. Additionally, analysts expect a decline of 30% to 130 MWs which amazingly signifies an increase of 58% with respect to the last years same quarter results.
The enterprise has set a higher guidance of 920-1000 MWs with analysts forecasting a slightly lower target of 914 MWs. The company might not set a higher guidance this year since it deployed volumes in the 2nd half of 2014. Customers will be able to enjoy the market run-rate if SolarCity Corp. (NASDAQ:SCTY) will hit 250MWs per quarter. With the Suisse Analysts expectations, the company might remain at its operating system of the third-quarter at around 230 MWs.
These estimates put the company at an expectation of a net loss of $118 million on a revenue of $71.8 million. The company has also archived to miss revenue estimates in the past two consecutive quarters. SolarCity Corp. (NASDAQ:SCTY) registers a net loss of $1.27 per adjusted share missing only one estimated loss in the past six quarters. Nine analysts rate the company’s stock a buy, while only one gives it a sale out of the twelve analysts who covered the company’s stock.
Goldman Sachs Group has rated the enterprise’s stock to be the top in the solar industry on the American soil, giving it $88 as the targeted price. A firm in New York, Derivatives Strategist which is a financial service firm, urges investors to purchase SolarCity’s (NASDAQ:SCTY) 20th February expiry call of $56 and reap full benefits at the end of this quarter which stands at $3.10 before Thursday’s closure. The call option depends on the quarterly results while the money invested relies on the call option.
For example, when the stock runs at $61 the call option for the quarter would be $5 and suppose the stock remains below the call option then the money invested would vanish in the air. The current position for SolarCity Corp (NASDAQ:SCTY) favours a movement of $6.7 in either direction. This movement is because of the historical instability in the past eight quarters with its stock maintaining a 9% fall or rise. Goldman Sachs, in December 2014, also advised investors to buy the company stock at a call option of $67.50 in January, expiring next year.