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Sunrun shares up 3% on exceeding storage capacity guidance despite revenue miss

EditorRachael Rajan
Published 07/11/2024, 21:30
RUN
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SAN FRANCISCO - Sunrun Inc . (NASDAQ:RUN) shares jumped 3% after the residential solar company reported third quarter results that beat expectations for storage installations, despite missing on overall revenue and earnings per share.

The company installed 336.3 megawatt hours of storage capacity in Q3, exceeding the high end of its guidance range and representing 92% YoY growth. Storage attachment rates reached 60%, up from 33% in the prior year period.

However, Sunrun reported Q3 revenue of $537.2 million, missing analyst estimates of $565.6 million. Adjusted loss per share came in at $0.37, wider than the $0.09 loss analysts expected.

"In the third quarter, we again set new records for both storage installation attachment rates and delivered solid quarter-over-quarter growth for solar installations while reporting higher Net Subscriber Values," said Mary Powell, Sunrun's CEO.

The company installed 229.7 megawatts of solar energy capacity in Q3, at the high end of its guidance range. Networked solar energy capacity reached 7.3 gigawatts.

Sunrun generated $2.5 million in cash in Q3, marking its second consecutive quarter of positive cash generation. The company reiterated its guidance for $350-$600 million in cash generation in 2025.

For Q4, Sunrun expects storage capacity installations of 320-350 megawatt hours and solar energy capacity installations of 240-250 megawatts. The company anticipates Net Subscriber Value to increase in Q4 compared to Q3.

The strong storage growth and reiterated long-term cash generation outlook appeared to outweigh the revenue and earnings miss for investors, driving shares higher after hours.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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