Real Goods Solar Inc. (RGSE), a U.S. photovoltaic panel installer, fell to the lowest in almost a year after reporting a wider quarterly loss and replacing its chief executive officer as it focuses on residential rooftops.
Real Goods dropped 17 percent to $1.84 at the close in New York, the lowest price since Aug. 28. The shares have declined 39 percent this year.
Real Goods’ residential rooftop unit President Dennis Lacey was named to replace Kamyar Mofid as CEO in a shift away from money-losing commercial installations, the Louisville, Colorado-based company said in a statement yesterday after the close of regular U.S. trading.
“RGS is shifting its focus to exclusively drive sales in the residential market given 20 percent gross margin profile relative to negative results in the commercial sector,” Jeffrey Osborne, an analyst at Cowen & Co. in Boston who rates the shares the equivalent of a hold, said today in a note to clients. “We see this as a sound move.”
For the second quarter, Real Goods reported its net loss widened to $21.4 million, or 46 cents a share, from $2.91 million, or 11 cents, a year earlier. Gross margin shrank to 11 percent from 23 percent, partly because of costs associated with its commercial rooftop segment.
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