SolarCity Corp. (NASDAQ: SCTY) shares plunge more than 20 percent on Tuesday as the company reported wider-than-expected quarterly loss and posted disappointing guidance for the current period.
The solar company posted a first-quarter loss of $25 million, or 25 cents a share, compared with a loss of $21.5 million, or 22 cents a share, a year earlier. Excluding certain items, the loss was $2.56 a share. Analysts surveyed by Thomson Reuters had projected a loss of $2.32 per share.
Revenue rose 81.6 percent to $122.6 million for the period ended March 31, topping analysts’ estimates of $110 million. However, company’s operating expenses increased 54 percent in the first quarter.
Weak performance in the first quarter made the company lowers its guidance. The company now expects installation between 1.0 gigawatts and 1.1 gigawatts for 2016, below its pervious guidance of 1.25 gigawatts. For the current quarter, the company expects installation decline 2 percent to to 185 megawatts from the same period last year.
For the second, the company expects losses per share between $2.70 and $2.80 on revenue of between $135 million and $143 million. Analysts had projected a loss of $2.14 per share on revenue of $151 million.
“The business model is to provide energy at a lower cost than you can get it today from fossil fuel,” Chief Executive Officer Lyndon Rive said during the call. “There are many different products our customers want. Some customers prefer power-purchase agreements, some prefer leases, and we’ve seen a growing demand for customers who want to own their equipment.”
SolarCity shares drop 20 percent to close at $17.82 on Tuesday.