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Published on March 15th, 2016 | by Joshua S Hill

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Despite Steady Growth, Vivint Solar Facing Bleak Future

March 15th, 2016 by  


American solar energy company Vivint Solar reported across-the-board growth for its Q4’15 and FY’15 report, but things are still heading downhill for the company.

Vivint-1On Monday, Vivint Solar revealed that it installed 230.7 MW in 2015, with a total of 58.6 MW in the fourth quarter. The total number of rooftop installations in the quarter were up to 8,411, which is significantly higher than a year earlier, but down on the third quarter in 2015. The company has now installed a cumulative total of 458.9 MW across a total of 68,527 installations.

The company’s financials were similarly steady, with Operating Leases and Incentives Revenue of $15.5 million, up 163% year-over-year, though the company’s losses from operations increased to $55.7 million, up from $40 million a year earlier.

Total revenue from operating leases and incentives was $61.2 million for the whole year, up 182% year-over-year.

Vivint Solar refrained from providing any guidance for 2016, though this is likely to be dramatically affected by its recent announcement that it had not only terminated its merger agreement with SunEdison due to “SunEdison’s failure to meet its obligations under the merger agreement,” but that it had already commenced “action in the Court of Chancery of the State of Delaware suing SunEdison, Inc. over its willful breach of the merger agreement between Vivint Solar and SunEdison.”

However, it is unclear what Vivint Solar is aiming to accomplish, considering just how long the company’s shares have been in free-fall, dropping from around the $10 mark three months ago to just underneath $4 this week.

Vivint-2

Analysts are similarly down on Vivint Solar’s prospects, with Seeking Alpha proclaiming a “bleak future” for the company, and CNBC highlighting the company’s “52-week low” share prices following the announcement of the merger termination.





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About the Author

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.



  • JamesWimberley

    How much of Vivint’s problems are down to its commitment to the dubious and exploitative leasing model? Residential solar in the USA is deeply and exceptionally problematic. Costs are sky-high compared to utility and are not coming down. Soft costs actually increased because of “customer acquisition”, aka as dodgy marketing.

  • Joseph Hall

    I think the proclamations on Vivent and SunEdison may be premature. All stocks have suffered over the past two years – let’s face facts the DOW hasn’t gone anywhere but down for a while.

    And of course it’s a challenge when all energy stocks are somehow tied to the death spiral of the fossil fuels industry.

    Once that correlation is broken, we’ll see a rebound in all alternative energy stocks…

  • neroden

    It’s obvious that Vivint’s board would rather attempt to achieve profit on their own, than get tied to soon-to-be-bankrupt SunEdison. Sounds from this like Vivint’s fundamentals are OK.

    • Kevin McKinney

      SUNE seems reasonably well-placed to avoid bankruptcy in the short term, with many of the short-term liquidity hurdles now past. If profitability improves this year, SUNE may do fine over the longer term. Such a development has been projected by management, but it’ll take actual performance to move market sentiment much, I think.

      • neroden

        “Many of”? If they still have short-term liquidity hurdles, they’re still in trouble.

  • Jack Wolf

    I’m surprised the author chose to cite Seeking Alpha. That’s not a research firm, but rather a group of consultant writers who are subcontractors. Each writer has their own views, usually based on what they invest in, and whether they are short or long.

    • neroden

      It’s not correct citation practice. Given that Seeking Alpha is a platform with no editorial view — they often publish opposing views on the same stock on the same day — the individual writer should be cited.

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