NEW YORK (TheStreet) -- SolarCity (SCTY) shares are falling sharply, down 8.1% to $52.36 in trading on Wednesday ahead of the release of its quarterly results as the company expects to post a wider loss this quarter than it did during the same period last year.
The U.S.'s leading residential solar installer said that it expects to lose between $1.10 and $1.20 per diluted share during the third quarter this year, a much wider loss than the 43 cents per share it lost during the same quarter last year.
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Analysts at Thomson Reuters expect the company to post a loss of $1.11 per diluted share on revenue of $60.23 million.
Despite the bleak outlook, the company does expect to see an 83% midpoint increase in the number of megawatts it deploys during the period.
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 few notable weaknesses, 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. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow and feeble growth in its earnings per share."