Sunrun Slides After Forecasting Slower Rooftop Solar GrowthBy
Installations this year to climb 40% after 76% gain in 2015
Company lost 12 megawatts of expected sales in Nevada
The residential rooftop solar-power provider slipped 11 percent to $6.36 at the close in New York, the most since Feb. 11. The company has dropped 55 percent since its initial public offering in August.
Sunrun expects installations this year will climb 40 percent to 285 megawatts. That’s down from 76 percent growth last year, which was aided by strong demand in Nevada. New fees on solar homes in the state prompted an abrupt exit from the market in January. That, combined with efforts to preserve cash, reduced expectations for 2016, said Patrick Jobin, an analyst at Credit Suisse Group AG.
The “2016 guidance was significantly below our expectations,” Jobin said in a research note Friday. He had expected Sunrun to at least maintain growth this year. “Without question, management’s credibility will suffer until the decisions made are demonstrated to be sound and the company is able to re-establish a track record of meeting guidance.”
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