Sunrun Inc. | $RUN Stock | Shares Spike Up on Better Than Expected Earnings & Revenue Numbers


Sunrun Inc. (NASDAQ: RUN)



Sunrun Inc. (RUN), a residential solar energy systems company yesterday reported their second quarter 2016 financial results. Sunrun reported second quarter earnings of $0.31 per share which beat analyst expectations of a loss of $0.45 per share. Sunrun reported second quarter revenues of $122.5 million which beat analyst expectations of $119.5 million.


Sunrun Inc. CEO’s  Comments

“We are pleased with our performance in the second quarter as we continue to grow and create customer value in 2016,” said Lynn Jurich, Sunrun’s chief executive officer.  “We deployed 65 MW in Q2 while improving creation costs over 10% compared to the first quarter and delivering $51 million of NPV.  We believe we are well positioned to continue to build growth and customer value that will differentiate us as the leader in bringing local clean energy direct to consumers.”


RUN Technical Analysis

RUN opened trading yesterday at $5.28 which was up from the previous days trading of $5.22. RUN closed trading yesterday at $5.41 and spiked up after market to $6.20, equivalent to a 15% increase from the closing price. Taking a look at the daily chart we can see the last time RUN traded above these levels was on June 21st when it traded at $6.23. Taking a closer look at the daily chart we can see that RUN has been in a downward trend dating back to April 27th when it traded at $8.39 . RUN has a float of 54.61 million shares and traded 1.52 times the normal daily trading volume on Thursday. For trading purposes, I would like to see RUN open trading on Friday above $5.90 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Sunrun Inc. (Sunrun), incorporated on June 20, 2008, is engaged in the design, development, installation, sale, ownership and maintenance of residential solar energy systems (Projects) in the United States. The Company is engaged in providing solar energy services and products to its customers. Sunrun has over 111,000 customers across 15 states, as well as the District of Columbia. With its solar service offerings, the Company installs solar energy systems on its customers’ homes and provide them the solar power produced by those systems for a 20-year initial term. In addition, the Company monitors, maintains and insures the system during the term of the contract.

The Company offers various plans and services, such as Pay as you go and Purchase your system. It offers the option to go solar through a lease or power purchase agreement (PPA). Sunrun owns and monitors the system, and users pay for the power it produces. Its Pay as you go offers plans, such as BrightSave Monthly and BrightSave Prepaid. Sunrun’s BrightSave Monthly plan comes with both product and workmanship warranty, as well as protection against future utility rate hikes. Sunrun designs solar system that meets the needs of user’s home and lifestyle using its BrightPath technology. Users can lock in over 20 years of electricity with Sunrun’s BrightSave Prepaid solar lease plan. Sunrun insures, maintains and repairs the solar facility, which also includes inverter replacement. With Sunrun’s BrightBuy, users can purchase the entire solar system. Users pay a one-time upfront cost to the Company for the hardware and installation, and gain ownership of the system. Sunrun also offers BrightBuy and Bright Advantage Products.  Reuters