Why Sunnova Energy Stock Burned So Brightly Today

Market sentiment changed abruptly on previously down-and-out stock Sunnova Energy (NYSE: NOVA) on Thursday. The company delivered quarterly results that surprised greatly on the upside, and investors showed their appreciation by pushing the stock's price up by more than 17% across the day. By contrast, the S&P 500 index suffered a slump of 1.4%.

Revenue jump and a net loss diet

After market hours Wednesday, Sunnova said that revenue for its second quarter surged 32% higher year over year to just under $220 million. The solar company was in the red on the bottom line but managed to narrow its loss considerably. This was slightly over $33 million ($0.27 per share) for the period, against the more than $86 million deficit of Q2 2023.

On average, analysts tracking the stock were estimating Sunnova would book $220.4 million in revenue and a $0.65 per share net loss.

In its earnings release, Sunnova quoted its founder and CEO William Berger as saying that " The fundamentals of our business continue to be backed by macroeconomic tailwinds like steadily rising utility rates, increasing grid instability, and declining equipment costs."

He added that "When coupled with a rapid increase in customers favoring leases and power purchase agreements over loans, these dynamics result in an even greater value proposition for customers and a 'value wedge' for Sunnova."

Customer "adds" and EBITDA guidance unveiled

Sunnova also proffered selective guidance for the entirety of 2024. Management believes the company's customer additions will come in at 110,000 to 120,000. Non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization ( EBITDA ) should land at $650 million to $750 million.

No revenue or bottom-line forecasts were provided.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .