Sunrun jumps on ‘solid’ Q2 release

Sunrun (NASDAQ:) shares are up over 8% premarket Thursday after topping second-quarter consensus earnings expectations.

After Wednesday’s close, RUN earnings of $0.25, $0.49 better than the analyst estimate of a loss per share of $0.24. However, revenue for the quarter came in at $590.19 million, below the consensus estimate of $629.35M.

The company revealed that the installed storage capacity of 103 megawatt hours in Q2 represents 35% growth year-over-year, while recent backup storage attachment rates for new sales nearly doubled to over 30% nationally, which drove the company’s higher net subscriber value outlook.

It also stated that sales activities outside of California “have been robust in Q2,” rising 25% year-over-year, with the growth rate maintained through June and July. Net subscriber value of $12,321 rose $321 from Q1.

“Sunrun is rapidly expanding its lead as America’s clean energy company,” said Mary Powell, Sunrun’s chief executive officer. “We are seeing a tremendous acceleration in storage attachment rates on new sales, in California and across the country, which provides increased customer value and superior margins for Sunrun, while building a foundation of controllable generation assets that enables a clean energy future for all.”

Reacting to the report, Citi analysts said it was a “solid 2Q print.”

“Results matched our estimates but were meaningfully higher than consensus,” they said. “We expect RUN to outperform based on strong results and positive outlook.”

At BMO Capital Markets, analysts said the company stuck to the script.

“RUN has been consistent in its approach to higher interest rates and post-NEM 3.0, choosing more modest growth in geographies where customer economics remain favorable and driving towards better storage attach rates in CA,” the analysts wrote.

“Approach is helping to avoid negative surprises. RUN did point towards lower end of its 10-15% 2023 capacity growth guidance due to longer installation time from more battery customers and slower recovery post-NEM in CA. That said, company is delivering on NSV.”