Sunnova Energy International
stock was surging Thursday after the solar-panel company said it won’t need to raise corporate capital for fiscal 2024.
While
Sunnova
(ticker: NOVA) said in July that it expected it would need to raise $500 million for fiscal 2024, it now doesn’t believe it will have to do so. On a Thursday conference call with investors, CFO Robert Lane cited a variety of moves, including cost cuts, price increases, and reduced investment in new systems, as helping to boost liquidity.
As of Sept. 30, Sunnova had total cash of $725.1 million.
Shares of Sunnova were up 15% to $9.22 on Thursday, which put them on pace for their largest percentage increase since November 2022, according to Dow Jones Market Data. Thursday’s gain is also the largest post-earnings increase for Sunnova stock since the company reported its second-quarter results in July 2022.
Sunnova reported a third-quarter loss of 53 cents a share from revenue of $198.4 million. Analysts surveyed by
FactSet
were expecting the company to post a loss of 33 cents a share from revenue of $205 million.
The company also said it expects fiscal 2024 earnings before interest, taxes, depreciation, and amortization, to be between $350 million and $450 million. The FactSet consensus call was for $333.2 million.
“Sunnova remains resilient despite the challenging market dynamics marked by higher interest rates and concerns about overall residential solar growth,” CEO John Berger said on the company’s conference call.
Higher rates make it more expensive to finance home-improvement projects, including the installation of solar panels, while regulatory changes in California, the most popular state for solar panels, have also hurt demand.
That has made 2023 a challenging year for the solar industry. Sunnova stock has fallen 49% so far in 2023.
Write to Angela Palumbo at [email protected]
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