Tag Archives: technology

Tesla ‘Cousin’ SolarCity Trims 2016 View On Nevada, ITC Effect

Nevada’s net-metering decision torched Tesla Motors ( TSLA ) “cousin” SolarCity ( SCTY ) late Monday, after the No. 1 residential solar installer cut 2016 installation guidance and reported a 150-megawatt dip in expected Q1 bookings. SolarCity also reported a wider-than-expected Q1 loss and was in the red, minus items, for the 13th consecutive quarter. Revenue, however, topped the expectations of 18 analysts polled by Thomson Reuters, and SolarCity beat its own installation forecast. In after-hours trading following the earnings release, SolarCity stock crashed more than 15%, after rising 3.1% in Monday’s regular session, at 22.51. As of Monday’s close, shares are down 56% this year. For Q1, SolarCity reported $123 million in sales, up 82% vs. the year-earlier quarter, and smashing Wall Street expectations for $108.4 million. But losses per-share minus items deepened to $2.56 vs. consensus views for $2.31. Last year, SolarCity pledged to curb its annual 80% growth rate in order to turn around profits. During Q1, SolarCity installed 214 megawatts, up 40% year over year and beating its own guidance for 180 MW. For Q2, SolarCity expects 185 MW in installations, which would be down 2% vs. Q2 2015. SolarCity also guided to $2.70-$2.80 losses per share ex items, widening from $1.61 in the year-earlier quarter and missing the consensus for $2.13. For the year, SolarCity now expects 1 gigawatt to 1.1 GW in installations vs. earlier views for 1.25 GW, noting that Q1 bookings were about 150 MW lower than anticipated and are unlikely to be made this year. SolarCity said Nevada averaged about for 20 MW in quarterly installations. The company exited the state in December after Nevada regulators opted to cut net-metering payments to solar customers, which makes the economics of installing solar energy systems less attractive to users. Top rival Sunrun ( RUN ) also exited Nevada. Spooked by Nevada’s move, some potential customers have backed off booking solar installations, SolarCity said Monday. And the extension of the U.S. Investment Tax Credit (ITC), a key solar subsidy, beyond what had been a 2016 deadline — good in the long run — removed the urgency to get projects done right away. “Pending regulatory decisions in California, Massachusetts and New Hampshire (which have since been largely resolved) further delayed solar purchasing decisions,” SolarCity wrote in its earnings release. Tesla CEO Elon Musk is chairman of SolarCity, whose CEO is his cousin, Lyndon Rive. The two companies have a battery-technology partnership.

After Hours: SolarCity, Gap Crash, Stamps.com, MaxLinear Rise

SolarCity ( SCTY ), Gap ( GPS ), Stamps.com ( STMP ) and  MaxLinear ( MXL ) were among those reporting quarterly earnings or preliminary figures after the close on Monday. SolarCity SolarCity’s per-share loss deepened to $2.56, worse than an expected loss of $2.32. GAAP revenue surged to around $123 million, topping estimates for $109.8 million. But the residential solar-energy systems installer expects a second-quarter loss that was far worse than investors expected. SolarCity cut its full-year installation forecast to 1.0-1.1 gigawatts from 1.25 gigawatts and said first-quarter bookings were weak Shares tumbled 14% in late trading after closing up 3.1% on the stock market today . The company in a Q1 review cut its full-year installation forecast to 1.0-1.1 gigawatts from 1.25 gigawatts and said first-quarter bookings were weak. The company, whose chairman is Tesla ( TSLA ) CEO Elon Musk, also said regulatory decisions, pending or resolved, hindered potential decisions on purchases. Gap Gap expects first-quarter EPS of 31 to 32 cents, below analysts’ consensus for 33 cents after saying that sales fell 6% to $3.44 billion, well below Wall Street’s $3.54 billion target. April same-store sales fell 7%. The struggling apparel retail also said it’s evaluating its Banana Republic and Old Navy chains, mainly outside the U.S. Gap shares plunged 11% in extended trading after closing up 0.7% at 21.81. Gap will report full Q1 results on May 19. Stamps.com Stamps.com earned $1.72 a share in its Q1, up 139% vs. a year earlier. Revenue rose 86% to $81.8 million. Wall Street had expected EPS of $1.06 on revenue of $65.61 million. Stamps.com now sees full-year EPS of $6-6.50 and revenue of $310 million-$330 million. Analysts had forecast EPS $5.28 and revenue of $301.8 million. Stamps.com stock leapt 17% in late trading. Shares closed up 4.7% to 88.34, trying to break a 2-month downtrend since hitting a record high of 123.75 on May 4. MaxLinear MaxLinear ( MXL ) stock rose late Monday after the wireless chipmaker reported strong first quarter earnings growth and said it will buy the wireless infrastructure backhaul business of Broadcom ( AVGO ) for $80 million. On April 28, MaxLinear announced that it had bought assets related to Microsemi’s ( MSCC ) wireless business, which was previously part of PMC-Sierra, for $21 million plus some assumed liability. MaxLinear’s Q1 EPS minus one-time items shot up to 45 cents vs. 9 cents a share in the same quarter a year ago, beating analyst estimates by 2 cents. Revenue grew 190% to $102.7 million, edging views for $102.2 million, partly on strong early ramp sale of its high-speed optical interconnect products. MaxLinear shares rose 3% late.  

‘Stagefright’ Spurs Security Probe Of Google, Apple, Telecom Firms

Federal regulators, citing global worries over the “Stagefright” security flaw, on Monday said they would seek information from Google, Apple ( AAPL ), AT&T ( T ), Verizon Communications ( VZ ) and others on software updates and measures to combat hacking. Alphabet ( GOOGL )-owned Google last week announced fixes to the Stagefright vulnerability . Apple has also faced more threats from malicious software via text messaging, apps and other tactics that hackers utilize. Apple and Google alert iOS and Android software users, respectively, to their security updates. The Federal Communications Commission and Federal Trade Commission plan to jointly look into how mobile phone vulnerabilities are addressed and what role is played by service providers such as Verizon, AT&T, T-Mobile US ( TMUS ) and Sprint ( S ). “There have recently been a growing number of vulnerabilities associated with mobile operating systems that threaten the security and integrity of a user’s device, including ‘Stagefright’ in the Android operating system, which may affect almost 1 billion Android devices globally,” the FCC said in a statement . AT&T and Verizon shares both fell a fraction in the stock market today , while shares of Alphabet and Apple rose a fraction. The Federal Trade Commission said it has ordered eight mobile device manufacturers to provide the agency with information about how they issue security updates to address vulnerabilities in smartphones, tablets and other mobile devices. The eight companies are: Apple, Google, BlackBerry ( BBBY ), HTC America, LG Electronics, Microsoft ( MSFT ), Motorola Mobility and Samsung Electronics.