Sunrun stock dropped Friday, following its fourth-quarter earnings report that beat revenue estimates but fell short on earnings as omicron matters took a toll. RUN stock tumbled on the news.
Late Thursday, Sunrun reported an adjusted loss of 19 cents a share on revenue of $435.2 million. Analysts expected Sunrun to report an adjusted loss of 10 cents on revenue of $409 million, according to FactSet. Revenue jumped 36% from the year-ago period.
RUN stock plunged 6.8% to close at 21.56 on the stock market today, near a 17-month low.
In the fourth quarter, "Omicron-related labor shortages and higher fulfillment costs had a $13 million impact," Needham analyst Vikram Bagri wrote in a note to clients. "Additionally, tight battery supply impacted product mix resulting in a $18 million impact on total value."
However, said Bagri, "Adjusting for these issues, results would have been significantly better than our estimates. Customer orders and demand remains strong as evidenced by a 57% growth in backlog year-over-year, which will be captured in 2022."
RUN Stock: Annual Revenue Jumped 75%
For the year, Sunrun said revenue grew 75% to $1.61 billion.
"The Sunrun team delivered record volumes in 2021, having added over 110,000 customers in the year representing 31% growth in new installations while bringing two large companies together and navigating a dynamic operating environment during Covid," Chief Executive Mary Powell said in written remarks with the Sunrun earnings release.
The company says it can offer solar energy to households with little to no upfront cost to those who lease their systems and offers a savings vs. traditional electricity. For those who lease, it designs, installs, finances, insures, monitors and maintains the systems. It also sells systems to those who want to buy.
In addition, Sunrun also offers a home solar battery service, Sunrun Brightbox. The device is designed to manage household solar energy, storage and utility power.
SolarEdge reported fourth-quarter financial results on Tuesday that missed on earnings but beat on revenue. SunPower reported fourth-quarter results Wednesday that topped revenue estimates but missed on earnings.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
