What's Going On With Sunrun Stock Wednesday?

Sunrun Inc RUN shares are surging Wednesday after the company reported better-than-expected financial results for the second quarter and announced a partnership with Tesla Inc TSLA to support Texas’s power grid.

• Q2 Revenue: $523.866 million, versus estimates of $515.167 million

• Q2 EPS: 55 cents, versus estimates for a loss of 31 cents

Sunrun reported customer additions of 26,687 in the quarter. The company had 984,000 customers as of June 30.

Storage capacity installed totaled 264.5 megawatt hours in the second quarter, up 152% year-over-year. Solar energy capacity installed came in at 192.3 megawatts.

Sunrun also reported cash generation of $217 million in the second quarter and introduced cash generation guidance. The company expects to report full-year cash generation of $350 million to $600 million for 2025.

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Sunrun also announced a partnership with Tesla Electric, a retail electricity provider operated by Tesla Energy Ventures LLC, a subsidiary of Tesla.

Sunrun noted the partnership has already enrolled more than 150 Sunrun customers in an aggregated power program. The company said it plans to scale up enrollments while dispatching stored solar energy from at-home batteries to rapidly increase available electricity reserves on the grid during periods of high consumption.

Customers will be compensated for their participation via annual payments. The estimated payment for 2024 participation is $400 per Powerwall. Sunrun will earn incremental recurring revenue for the program.

Following the announcements, Piper Sandler analyst Kashy Harrison maintained Sunrun with an Overweight and raised the price target from $20 to $23. Oppenheimer analyst Colin Rusch also maintained an Outperform rating and raised the price target from $19 to $22.

RUN Price Action: Sunrun shares were up 12.3% at $18.50 at the time of writing Wednesday, according to Benzinga Pro.

Photo: Andreas from Pixabay.