SolarCity Plummets 20% Following Earnings Release

Despite an earnings beat, SolarCity Corp SCTY was trading down more than 20 percent in the after-hours session due to cutting Q2 guidance.

Earnings are now projected to be between the range of $(2.80) and $(2.70) per share, underperforming the estimated consensus of $(2.13). Q2 sales also undercut estimates with a guidance range between $134-$143 million against of $149.4 million estimates.

Q1 adj. EPS came in at $(2.56) vs. $(2.31) estimates. Q1 Sales were $122.57 million vs. $108 million estimates.

Cost per watt increased a striking 19 percent from Q4 2015 "largely owing to lower volumes" according to the Q1FY16 shareholder letter. This makes Q1FY16 the third-most costly quarter per installation in the company's history.

Shares traded recently at $17.99, down 20 percent in the Monday's after-hours session.