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SunPower (SPWR) Q1 Loss Wider Than Expected, Revenues Up Y/Y
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SunPower Corp. (SPWR - Free Report) incurred adjusted loss of 41 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 40 cents. The company had incurred a loss of 20 cents per share a year ago.
Excluding one-time adjustments, the company incurred a GAAP loss of 63 cents per share, narrower than the prior-year quarter’s loss of 83 cents.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $411.6 million, missing the Zacks Consensus Estimate of $425 million by 3%. However, the top line improved 3.2% from the year-ago quarter’s $398.9 million. The reported figure also exceeded the company’s expectation of generating $350-390 million revenues in the first quarter. The year-over-year upside in revenues can be primarily attributed to construction revenues from solar services contracts.
Furthermore, total operating expenses in the quarter declined 44.5% to $80.3 million compared with that in the first quarter of 2018. Notably, lower expenses for impairment of residential lease assets led to the downturn.
Also, a gain from business divestiture caused reduction in operating expenses.
These apart, SunPower made deployment of 455 megawatts (MW) in the first quarter compared with 326 MW deployed in first-quarter 2018. It also exceeded the company’s expectation to deploy 360-400 MW in the reported quarter.
SunPower Corporation Price, Consensus and EPS Surprise
SunPower had cash and cash equivalents of $185.6 million as of Mar 31, 2019, compared with $309.4 million as of Dec 30, 2018.
Long-term debt was $71.6 million as of Mar 31, 2019, compared with $40.5 million as of Dec 31, 2018.
In the first quarter, net cash outflow from operating activities totaled $149 million compared with the year-ago quarter’s figure of $233.3 million.
Outlook
For second-quarter 2019, the company expects to generate adjusted revenues of $420-$460 million. Adjusted gross margin is estimated to be 7-10%. Additionally, it anticipates deployment of 550-600 MW in the same period.
Meanwhile, SunPower still expects to generate adjusted revenues of $1.9-2.0 billion and deploy 1.9-2.1 gigawatts in 2019. However, it has raised adjusted EBITDA projections for the full year from the earlier guidance of $80-$110 million to $90-$100 million.
First Solar Inc. (FSLR - Free Report) incurred a loss of 64 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents.
Sunrun Inc. (RUN - Free Report) incurred a loss of 12 cents per share in first-quarter 2019 against the Zacks Consensus Estimate of earnings of 32 cents.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2019 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by 3.2%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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SunPower (SPWR) Q1 Loss Wider Than Expected, Revenues Up Y/Y
SunPower Corp. (SPWR - Free Report) incurred adjusted loss of 41 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 40 cents. The company had incurred a loss of 20 cents per share a year ago.
Excluding one-time adjustments, the company incurred a GAAP loss of 63 cents per share, narrower than the prior-year quarter’s loss of 83 cents.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $411.6 million, missing the Zacks Consensus Estimate of $425 million by 3%. However, the top line improved 3.2% from the year-ago quarter’s $398.9 million. The reported figure also exceeded the company’s expectation of generating $350-390 million revenues in the first quarter. The year-over-year upside in revenues can be primarily attributed to construction revenues from solar services contracts.
Furthermore, total operating expenses in the quarter declined 44.5% to $80.3 million compared with that in the first quarter of 2018. Notably, lower expenses for impairment of residential lease assets led to the downturn.
Also, a gain from business divestiture caused reduction in operating expenses.
These apart, SunPower made deployment of 455 megawatts (MW) in the first quarter compared with 326 MW deployed in first-quarter 2018. It also exceeded the company’s expectation to deploy 360-400 MW in the reported quarter.
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 $185.6 million as of Mar 31, 2019, compared with $309.4 million as of Dec 30, 2018.
Long-term debt was $71.6 million as of Mar 31, 2019, compared with $40.5 million as of Dec 31, 2018.
In the first quarter, net cash outflow from operating activities totaled $149 million compared with the year-ago quarter’s figure of $233.3 million.
Outlook
For second-quarter 2019, the company expects to generate adjusted revenues of $420-$460 million. Adjusted gross margin is estimated to be 7-10%. Additionally, it anticipates deployment of 550-600 MW in the same period.
Meanwhile, SunPower still expects to generate adjusted revenues of $1.9-2.0 billion and deploy 1.9-2.1 gigawatts in 2019. However, it has raised adjusted EBITDA projections for the full year from the earlier guidance of $80-$110 million to $90-$100 million.
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
First Solar Inc. (FSLR - Free Report) incurred a loss of 64 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents.
Sunrun Inc. (RUN - Free Report) incurred a loss of 12 cents per share in first-quarter 2019 against the Zacks Consensus Estimate of earnings of 32 cents.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2019 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by 3.2%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>