We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SunPower (SPWR) Q2 Loss Wider than Expected, Offers View
Read MoreHide Full Article
SunPower Corp. (SPWR - Free Report) reported second-quarter 2016 adjusted loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents by 6.5%. In the year-ago quarter, the company had reported earnings of 9 cents.
Adjustments were related to the sale of projects to 8point3 Energy Partners – a holding company formed in 2015 with First Solar (FSLR - Free Report) , sale of operating lease assets, revenues from utility and power plant projects, stock-based compensation, sale-leaseback transactions, tax effect, and other adjustment costs.
On a GAAP basis, the company incurred a loss of 51 cents per share. In the year-ago quarter, it had reported earnings of 4 cents.
Operational Results
During the quarter, SunPower generated revenues of $401.8 million, surpassing the Zacks Consensus Estimate of $341 million by 17.8%. Reported revenues also grew 6.7% from the year-ago figure of $376.7 million.
The company’s gross margin contracted 450 basis points (bps) to 13.1% from 17.6% in the prior-year quarter. Total operating expenses were up 11.9% to $116.2 million owing to higher research and development expenses (52.8%), and selling, general and administrative expenses (3.9%).
SunPower had cash and cash equivalents of $590.1 million, as of Jul 3, 2016, compared with $954.5 million as of Jan 3, 2016. Long-term debt increased to $578.2 million from $478.9 million at 2015 end.
In the second quarter, net cash outflow was $300.1 million from operating activities, compared to outflow of $212.0 million in the year-ago period.
Guidance
On a non-GAAP basis, the company expects revenues in the range of $750–$850 million for the third quarter of 2016 and $3.0–$3.2 billion for the full year. Gross margin is estimated to be 16.5–18.5% for the third quarter and 10.5–12.5% for the full year.
SunPower expects to deploy 380–420 megawatts (“MW”) in the third quarter and 1,450–1,650 MW in 2016.
A Peer Release
SolarCity Corp. , the largest U.S. rooftop solar installer, posted an adjusted loss of $2.32 per share in the second quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.43. However, the quarterly figure was much wider than the year-ago loss of $1.61 per share. The wider loss can be attributed to the company’s rising expenses.
Zacks Rank
Currently, SunPower has a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SunPower (SPWR) Q2 Loss Wider than Expected, Offers View
SunPower Corp. (SPWR - Free Report) reported second-quarter 2016 adjusted loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents by 6.5%. In the year-ago quarter, the company had reported earnings of 9 cents.
Adjustments were related to the sale of projects to 8point3 Energy Partners – a holding company formed in 2015 with First Solar (FSLR - Free Report) , sale of operating lease assets, revenues from utility and power plant projects, stock-based compensation, sale-leaseback transactions, tax effect, and other adjustment costs.
On a GAAP basis, the company incurred a loss of 51 cents per share. In the year-ago quarter, it had reported earnings of 4 cents.
Operational Results
During the quarter, SunPower generated revenues of $401.8 million, surpassing the Zacks Consensus Estimate of $341 million by 17.8%. Reported revenues also grew 6.7% from the year-ago figure of $376.7 million.
The company’s gross margin contracted 450 basis points (bps) to 13.1% from 17.6% in the prior-year quarter. Total operating expenses were up 11.9% to $116.2 million owing to higher research and development expenses (52.8%), and selling, general and administrative expenses (3.9%).
SUNPOWER CORP-A Price, Consensus and EPS Surprise
SUNPOWER CORP-A Price, Consensus and EPS Surprise | SUNPOWER CORP-A Quote
Financial Position
SunPower had cash and cash equivalents of $590.1 million, as of Jul 3, 2016, compared with $954.5 million as of Jan 3, 2016. Long-term debt increased to $578.2 million from $478.9 million at 2015 end.
In the second quarter, net cash outflow was $300.1 million from operating activities, compared to outflow of $212.0 million in the year-ago period.
Guidance
On a non-GAAP basis, the company expects revenues in the range of $750–$850 million for the third quarter of 2016 and $3.0–$3.2 billion for the full year. Gross margin is estimated to be 16.5–18.5% for the third quarter and 10.5–12.5% for the full year.
SunPower expects to deploy 380–420 megawatts (“MW”) in the third quarter and 1,450–1,650 MW in 2016.
A Peer Release
SolarCity Corp. , the largest U.S. rooftop solar installer, posted an adjusted loss of $2.32 per share in the second quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.43. However, the quarterly figure was much wider than the year-ago loss of $1.61 per share. The wider loss can be attributed to the company’s rising expenses.
Zacks Rank
Currently, SunPower has a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>