SunPower (SPWR) Q3 Loss Narrower Than Expected, Revenues Fall

Zacks Equity Research
·3-min read

SunPower Corp. SPWR incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents. The company reported adjusted earnings of 6 cents per share in third-quarter 2019.

Excluding one-time adjustments, the company reported GAAP earnings of 26 cents per share against the prior-year quarter’s loss of 11 cents per share.

Operational Results

During the quarter under review, SunPower’s adjusted revenues came in at $274.8 million, surpassing the Zacks Consensus Estimate of $233 million by 18%. However, the top line declined 8.9% from the year-ago quarter’s $301.8 million.

The year-over-year decline can be primarily attributed to decreased revenues from solar power systems and residential leasing.

Total operating losses in the quarter were $2 million compared to the operating losses of $19.8 million reported in the year-ago quarter.

Total operating expenses amounted to $39.2 million during the third quarter compared to the operating expenses of $65.3 million in the year-ago quarter.

SunPower Corporation Price, Consensus and EPS Surprise

SunPower Corporation Price, Consensus and EPS Surprise
SunPower Corporation Price, Consensus and EPS Surprise

SunPower Corporation price-consensus-eps-surprise-chart | SunPower Corporation Quote

Financial Position

SunPower had cash and cash equivalents of $324.7 million as of Sep 27, 2020, compared with $302 million as of Dec 29, 2019.

Long-term debt was $68.4 million as of Sep 27, 2020, compared with $112.3 million as of Dec 29, 2019.

In the first nine months of 2020, net cash outflow from operating activities totaled $202.5 million compared to the cash outflow of $266.2 million in the first nine months of 2019.

Q4 and 2020 Guidance

For fourth-quarter 2020, the company expects to generate adjusted revenues of $330-$370 million. The Zacks Consensus Estimate for full-year revenues stands at $348.7 million, below the midpoint of the company-projected view.

For 2020, the company expects to generate adjusted revenues of $1.12-$1.16 billion. The Zacks Consensus Estimate for full-year revenues stands at $1.19 billion, above the company’s projected view.

Zacks Rank

SunPower currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

Enphase Energy ENPH reported third-quarter 2020 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 25%.

First Solar FSLR reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.

Upcoming Solar Releases

SolarEdge Technologies SEDG carries a Zacks Rank #3 (Hold) and is set to release third-quarter 2020 results on Nov 2.

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