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SunPower (SPWR) Up 7% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for SunPower Corporation (SPWR - Free Report) . Shares have added about 7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
SunPower Q1 Loss Narrower than Expected, Sales Beat
SunPower reported first-quarter 2017 loss of $0.42 per share, narrower than the Zacks Consensus Estimate of loss of $0.66. In the year-ago period, the company had posted loss of $0.42.
Adjustments were related to the sale of projects to 8point3 Energy Partners – a holding company formed in 2015 – along with First Solar, Inc., sale-leaseback transactions, utility and power plant projects, stock-based compensation, amortization of intangible assets, restructuring expenses, cost of above-market polysilicon, tax effect and other adjustment costs.
On a GAAP basis, the company incurred a loss of $0.97 per share, wider than the year-ago GAAP loss of $0.62.
Operational Results
During the quarter, SunPower garnered revenues of $429.5 million that surpassed the Zacks Consensus Estimate of $391 million by 9.8%. However, reported revenues declined 1% from the year-ago figure of $433.6 million.
Total operating expenses were down 25.2% to $97.7 million, owing to lower research and development and selling, general and administrative expenses in the first quarter.
Financial Position
SunPower had cash and cash equivalents of $387.4 million as of Apr 2, 2017 compared with $425.3 million as of Jan 1, 2017. Long-term debt increased to $501.3 million from $451.2 million at 2016 end.
In the first quarter, net cash outflow was $126.9 million from operating activities compared with outflow of $369.9 million in the year-ago period.
Guidance
On a non-GAAP basis, the company expects revenues in the range of $275–$325 billion for the second quarter and $2.1–$2.6 billion for 2017. Gross margin is estimated to be in 2–4% band for the second quarter.
SunPower expects to deploy 330–360 megawatts (“MW”) in the first quarter and 1.3–1.6 gigawatts (“GW”) in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
At this time, SunPower's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is more suitable for growth than value based on our styles scores.
Outlook
The stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.
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SunPower (SPWR) Up 7% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for SunPower Corporation (SPWR - Free Report) . Shares have added about 7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
SunPower Q1 Loss Narrower than Expected, Sales Beat
SunPower reported first-quarter 2017 loss of $0.42 per share, narrower than the Zacks Consensus Estimate of loss of $0.66. In the year-ago period, the company had posted loss of $0.42.
Adjustments were related to the sale of projects to 8point3 Energy Partners – a holding company formed in 2015 – along with First Solar, Inc., sale-leaseback transactions, utility and power plant projects, stock-based compensation, amortization of intangible assets, restructuring expenses, cost of above-market polysilicon, tax effect and other adjustment costs.
On a GAAP basis, the company incurred a loss of $0.97 per share, wider than the year-ago GAAP loss of $0.62.
Operational Results
During the quarter, SunPower garnered revenues of $429.5 million that surpassed the Zacks Consensus Estimate of $391 million by 9.8%. However, reported revenues declined 1% from the year-ago figure of $433.6 million.
Total operating expenses were down 25.2% to $97.7 million, owing to lower research and development and selling, general and administrative expenses in the first quarter.
Financial Position
SunPower had cash and cash equivalents of $387.4 million as of Apr 2, 2017 compared with $425.3 million as of Jan 1, 2017. Long-term debt increased to $501.3 million from $451.2 million at 2016 end.
In the first quarter, net cash outflow was $126.9 million from operating activities compared with outflow of $369.9 million in the year-ago period.
Guidance
On a non-GAAP basis, the company expects revenues in the range of $275–$325 billion for the second quarter and $2.1–$2.6 billion for 2017. Gross margin is estimated to be in 2–4% band for the second quarter.
SunPower expects to deploy 330–360 megawatts (“MW”) in the first quarter and 1.3–1.6 gigawatts (“GW”) in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
SunPower Corporation Price and Consensus
SunPower Corporation Price and Consensus | SunPower Corporation Quote
VGM Scores
At this time, SunPower's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is more suitable for growth than value based on our styles scores.
Outlook
The stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.