Sunnova Plummets After Reporting Revenue Short of Estimates
Sunnova Energy International Inc. (Sunnova) shares plummeted after the company reported revenue that fell short of analysts’ estimates. Sunnova, a residential solar and energy storage services provider, reported a revenue of $123.2 million for the third quarter of 2023, missing the estimates of $125.7 million.
Sunnova’s Third Quarter Results
Sunnova reported a net loss of $7.3 million for the third quarter of 2023, compared to a net loss of $3.3 million in the same period last year. The company’s total operating expenses increased to $128.5 million from $117.2 million in the same period last year.
The company’s gross margin for the third quarter of 2023 was 17.3%, compared to 17.7% in the same period last year. Sunnova’s operating expenses as a percentage of revenue increased to 104.3% from 94.2% in the same period last year.
Sunnova’s Revenue Growth
Sunnova’s total revenue for the nine months ended September 30, 2023, increased to $369.2 million from $303.3 million in the same period last year. The company’s net loss for the nine months ended September 30, 2023, was $25.2 million, compared to a net loss of $11.2 million in the same period last year.
Sunnova’s total operating expenses for the nine months ended September 30, 2023, increased to $394.4 million from $334.5 million in the same period last year. The company’s gross margin for the nine months ended September 30, 2023, was 17.3%, compared to 17.7% in the same period last year.
Sunnova’s Cash Position
At the end of the third quarter of 2023, Sunnova had cash and cash equivalents of $58.2 million, compared to $77.2 million at the end of the same period last year. The company’s total debt was $1.2 billion at the end of the third quarter of 2023, compared to $1.1 billion at the end of the same period last year.
Sunnova’s Outlook
Sunnova expects its total revenue for the full year 2023 to be in the range of $490 million to $500 million. The company also expects its gross margin for the full year 2023 to be in the range of 17.5% to 18.5%.
Sunnova also expects its total operating expenses for the full year 2023 to be in the range of $530 million to $540 million. The company expects its net loss for the full year 2023 to be in the range of $45 million to $55 million.
Sunnova’s Stock Performance
Sunnova’s stock price has declined significantly since the company reported its third quarter results. The stock has fallen more than 20% since the announcement and is currently trading at around $9.50 per share.
Analysts’ Opinions
Analysts have mixed opinions about Sunnova’s stock. Some analysts believe that the company’s stock is undervalued and is a good long-term investment. Other analysts believe that the company’s revenue growth is not strong enough to justify its current stock price.
Sunnova’s Competitors
Sunnova’s competitors include Vivint Solar Inc., Sunrun Inc., and Tesla Inc. Vivint Solar reported a revenue of $214.2 million for the third quarter of 2023, while Sunrun reported a revenue of $326.2 million for the same period. Tesla reported a revenue of $8.77 billion for the third quarter of 2023.
Conclusion
Sunnova reported revenue that fell short of analysts’ estimates for the third quarter of 2023. The company’s total revenue for the nine months ended September 30, 2023, increased compared to the same period last year. Sunnova’s stock price has declined significantly since the company reported its third quarter results. Analysts have mixed opinions about Sunnova’s stock. The company’s competitors include Vivint Solar Inc., Sunrun Inc., and Tesla Inc.