What's Going On With Sunrun Stock Thursday?

Sunrun Inc RUN shares are moving lower Thursday after the company reported fourth-quarter financial results. Sunrun also announced a partnership with Lowe’s Companies Inc LOW and proposed an offering Wednesday after the close.

What Happened: Sunrun reported fourth-quarter revenue of $516.59 million, which missed estimates of $530.37 million, according to Benzinga Pro. The solar company reported a quarterly loss of $1.33 per share, missed estimates for a loss of 29 cents per share.

Fourth-quarter customer additions were 30,005, including 27,000 subscriber additions. Total customers were up 17% in the fourth quarter.

Storage capacity installed totaled 219.7 megawatt hours in the fourth quarter, representing growth of 154% on a year-over-year basis. Solar energy capacity installed came in at 227.1 megawatts in the quarter.

Sunrun said it generated $10.9 million in cash in the fourth quarter. The company had $988 million in total cash as of Dec. 31.

"Sunrun ended 2023 in a great position and is starting off 2024 with incredible momentum. Our team is driving an increased mix of higher-margin storage offerings and delivering positive Cash Generation in Q4," said Mary Powell, CEO of Sunrun.

"Our strong sales activities and market position gives us confidence that installations will grow considerably from Q1 levels."

Storage capacity installed is expected to be between 160 and 170 megawatts in the first quarter. Net subscriber value is expected to be sequentially lower in the first quarter due to seasonal patterns and timing of sales activities.

Sunrun also reiterated guidance for positive cash generation cumulatively from the fourth quarter of 2023 to the fourth quarter of 2024.

What Else: Sunrun also announced a partnership with Lowe’s to provide households with solar and storage services inside 430 Lowe's stores across the nation.

"As the nation's leading provider of solar energy with storage, this exciting partnership with Lowe's makes connecting with new customers even easier," Powell said. 

Less than 30 minutes after the company reported quarterly results and announced the partnership with Lowe’s, Sunrun proposed a private offering of $475 million worth of convertible senior notes due 2030. Shares were initially trading higher, but fell after the company announced the offering.

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RUN Price Action: Sunrun shares were down 7.57% at $14.40 at the time of writing, according to Benzinga Pro.

Photo: Nuno Marques on Unsplash.