Why Sunnova Energy stock burned so hot today

Market sentiment has turned sharply for stocks that were previously bearish and exhausted Sunnova Energy (NEW -4.81%) Thursday. The company delivered quarterly results that surprised big on the upside, and investors showed their appreciation by driving the stock price up more than 17% on the day. By contrast, the S&P 500 the index fell 1.4%.

Income jump and a net loss diet

After market hours on Wednesday, Sunnova said second-quarter revenue rose 32% year over year to just under $220 million. The solar company was in the red on the bottom line, but managed to cut its losses considerably. That was just over $33 million ($0.27 per share) for the period, compared to a shortfall of over $86 million in Q2 2023.

On average, analysts who follow the stock were expecting Sunnova to post revenue of $220.4 million and a net loss of $0.65 per share.

In its earnings release, Sunnova quoted its founder and CEO William Berger as saying that “The fundamentals of our business continue to be supported by macroeconomic headwinds such as steadily rising utility rates, increasing grid volatility and declining equipment costs.”

He added that “With a rapid increase in customers preferring power leases and power purchases over loans, this dynamic results in an even greater value proposition for customers and a ‘value wedge’ for Sunnova.” .

Customer “additions” and EBITDA guidance revealed

Sunnova also provided selective guidance for the full year 2024. Management believes the company’s customer additions will be 110,000 to 120,000. Non-GAAP (adjusted) earnings before interest, taxes, depreciation and amortization (EBITDA) should come in at $650 million to $750 million.

No revenue or bottom line forecasts were provided.