NEW YORK (TheStreet) -- SolarCity (SCTY) shares are falling, down 4.4% to $52.06, following the company's narrower than expected earnings loss after analysts at Morgan Stanley published a bearish note on Thursday.
SoloarCity reported a third quarter net loss of 75 cents per diluted share, a better showing than the $1.12 loss analysts were expecting for the period, while total revenue increased 20% to $58.3 million. Analysts were expecting revenue of $60.2 million.
Watch the video below for a closer look at SolarCity's latest quarterly results:
Analysts at Morgan Stanley maintained the company's "equal weight" rating and $92 price target.
The firm believes that the company may struggle to meet expectations in the near term. "Although the decline is modest and volume growth remains robust relative to 2013, we believe that management may continue struggling to exceed relatively lofty expectations in the coming quarters," said analysts at the firm.
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."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: SCTY Ratings Report
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