Morning Commentary: SolarCity drops after disappointing loss; EZCorp adds as shares pop

By Rebecca Melvin

New York, May 10 – SolarCity Corp.’s convertibles were bouncing around at lower levels early Tuesday as shares plunged about 25% on the heels of the San Mateo, Calif.-based solar panel company’s larger-than-expected loss for its first quarter.

SolarCity’s convertible traded last at 57.27, which was actually up from its lows around 55 but down from about 60 on Monday, according to Trace data.

SolarCity shares were last down $5.51, or 24.5%, at $17.00.

SolarCity reported an adjusted loss that was much greater than expected on revenue that was better than expected. The solar company reported an adjusted loss of $2.56 per share, which was larger than the year-earlier loss of $1.52 per share. Total revenue was $122.6 million, which was up from the year-earlier period.

Elsewhere, EZCorp Inc.’s convertibles traded up about 3 points in the early going on Tuesday as shares surged after the Austin, Texas-based pawn store operator reported a loss tied to its sale of the Grupo Finmart unit.

The EZCorp 2.125% convertibles due 2019 traded at 78, which was up from 75.25 last, according to Trace data. EZCorp shares were up 69 cents, or 15%, to $5.45.

EZCorp reported a fiscal second-quarter loss of $74.1 million, or $1.35 per share, compared to a profit notched in the same period last year, on revenue of $201.9 million. Adjusted earnings came to 7 cents per share.

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