Earnings: Vivint Solar loses heat in Q4

Shares of Vivint Solar (VSLR) tumbled over 8% during pre-market trading on Wednesday, a day after reporting widened losses and weaker-than-expected fourth quarter revenue. The stock slide is a follow-up to yesterday’s after-market decline of about 10%.

Even as the street was expecting a profit in Q4, the Lehi, Utah-based firm said its losses widened to 73 cents per share from 43 cents per share a year ago. Revenue was down 5% to $63.5 million, missing the average analysts’ consensus of $71.74 million.

Estimated Gross Retained Value per Watt at quarter end was $2.06, in line with the third quarter. This is one of the key metrics tracked by the street as an increase in installations would result in more value created per watt, which would improve the top line.

Vivint installed approximately 54 MWs during the quarter, in line with the management projection. For the full year 2019, the company expects 15% growth for MWs installed.

The company also provided guidance for the first quarter of 2019. Vivint said it expects Cost per Watt in the range of $3.45 – $3.52 and plans to install 43 – 45 MWs during this period.

FULL Q4 EARNINGS CONFERENCE CALL TRANSCRIPT – VIVINT SOLAR

VSLR shares have gained 75% in the past 52 weeks as investors expect the solar market to pick up this year.

The stock has been volatile throughout 2018 as the industry was impacted by the trade war between the US and China, resulting in lower demand for solar panels. Margins of other solar panel manufacturers like First Solar (FSLR), JinkoSolar (JKS), SunPower (SPWR) and Canadian Solar (CSIQ) were also hurt by dwindling panel prices due to lower demand.

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