Why SolarCity (SCTY) Is Slipping After Hours

Tickers in this article: SCTY

NEW YORK (TheStreet) -- SolarCity  is moving lower in extended trading after management guidance for its first-quarter net loss was deeper than expected.

After the bell, shares had taken off 1.1% to $76.29.

For its March-ending first quarter, the company expects an adjusted loss of 70 cents to 80 cents a share. Analysts surveyed by Thomson Reuters had forecast a per-share loss of 50 cents.

In the three months to December, the solar energy systems developer reported fourth-quarter revenue of $47.3 million, an 87.2% year-over-year increase. Analysts had estimated revenue of $45.27 million.

In the three months to December, the company recorded a net loss of 46 cents a share. Analysts had expected net losses of 55 cents a share.

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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."

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