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Sunworks' (SUNW) Q1 Loss Wider Than Expected, Revenues Lag

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Sunworks, Inc. incurred adjusted loss of 17 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 3 cents. The company incurred a loss of 7 cents in the year-ago quarter.    

Revenues

In the first quarter, the company generated revenues of $9.3 million that missed the Zacks Consensus Estimate of $13 million by 28.71%. The top line plunged 31% from the prior-year quarter’s figure.

In the quarter, revenues and profitability were affected by seasonal rains in California, which prohibited installation activity for many large agriculture and commercial projects.

Sunworks, Inc. Price, Consensus and EPS Surprise

Sunworks, Inc. Price, Consensus and EPS Surprise

Sunworks, Inc. price-consensus-eps-surprise-chart | Sunworks, Inc. Quote

Operational Results

As of March 31, 2019, the company has project backlog of $47.2 million scheduled for installation in the next 12 months.

Further, total operating expenses in the quarter declined 10.7% year over year to $3.6 million. Notably, decline in selling and marketing expensesled to the downside.

The company’s interest expenses increased to $0.2 million from $0.02 million in the year-ago quarter.

Financial Position

Sunworkshad cash and cash equivalents of $1.5 million as of Mar 31, 2019 compared with $3.6 million as of Dec 31, 2018.

As of Mar 31, 2019, the company had long term liabilities of $5.1 million compared with $4.1 million as of Dec 31, 2018.

Outlook

The company expects to generate revenues in the range of $18-$22 million, in each of the next two quarters. The company anticipates positive operating income in the upcoming two quarters. 

Zacks Rank

Sunworks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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