NEW YORK (TheStreet) -- SolarCity (SCTY) was falling 1.6% to $75.83 Wednesday after the company announced a weak forecast for the first quarter, despite posting a smaller-than-expected loss in the fourth quarter.
The company posted a loss of 46 cents a quarter, beating analysts' estimates of a loss of 56 cents a share by 10 cents. Revenue jumped 87.2% from the year-ago quarter to $47.3 million. Analysts surveyed by Thomson Reuters expected revenue of $45.28 million for the quarter.
Looking to the first quarter SolarCity expects a loss of between 70 cents and 80 cents a share, while analysts expect a smaller loss of 50 cents a share. The company foresees revenue of between $27 million and $29 million for the quarter, compared to analysts' estimates of $45.1 million.
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TheStreet Ratings team rates SOLARCITY CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOLARCITY CORP (SCTY) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures."