Sunrun Reports Q4 Earnings, Announces Partnership With Lowe's, Proposes Offering: The Details

Sunrun Inc RUN shares are moving in Wednesday’s after-hours session after the company reported fourth-quarter financial results.

• Q4 Revenue: $516.59 million, missed estimates of $530.37 million
• Q4 EPS: Loss of $1.33, missed estimates for a loss of 29 cents

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.”

Sunrun also announced a partnership with Lowe’s Companies Inc LOW 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. 

Outlook: 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.

About 25 minutes after the company reported quarterly results, Sunrun proposed a private offering to raise $475 million from convertible senior notes due 2030 for institutional investors. Shares were initially trading higher, but fell on the offering.

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RUN Price Action: Sunrun shares were down 13.90% at $13.41 at the time of publication, according to Benzinga Pro.

Photo: Leopictures from Pixabay.