SolarCity Corp., the most valuable U.S. solar company, delayed the release of its earnings for last quarter and will restate its 2012 and 2013 financial results after finding an accounting error related to the way it calculates overhead expenses.
Correcting the issue will increase the cost of solar-system sales by $16 million to $20 million for the nine months ended Sept. 30 and $20 million to $23 million for 2012, San Mateo, California-based SolarCity said today in a statement. Total overhead costs won’t change, and the company plans to file complete reports by March 18.
This is the second delay of the company’s fourth-quarter results. SolarCity was initially schedule to release its earnings on Feb. 24.
The company “discovered an error in the formula for allocating overhead expenses between operating lease assets and the cost of solar-energy system sales” starting in the first quarter of 2012, according to the statement.
SolarCity declined 2 percent to $83.26 at the close in New York. The company’s market value has increased 26 percent this year.