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SunPower (SPWR) Posts Wider Q2 Loss, Beats Revenue Estimates

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SunPower Corp. (SPWR - Free Report) incurred adjusted loss of 22 cents per share in second-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 9 cents. The company had incurred a loss of a penny per share in the year-ago quarter.

Excluding one-time adjustments, the company registered GAAP earnings of 75 cents per share against the prior-year quarter’s loss of $3.17 per share.

Operational Results

During the quarter under review, SunPower’s adjusted revenues came in at $481.9 million, surpassing the Zacks Consensus Estimate of $446 million by 8%. Moreover, the top line improved 7.8% from the year-ago quarter’s $447.1 million. The reported figure also exceeded the company’s expectation of generating $370-$410 million revenues in the second quarter. The year-over-year upside can be primarily attributed to increased revenues from SunPower Energy Services and SunPower Technologies.

Furthermore, total operating income in the quarter was $46.4 million. A gain from business divestiture caused significant reduction in operating expenses during the quarter.

These apart, SunPower deployed 622 megawatts (MW) in the second quarter compared with 385 MW in second-quarter 2018.  The company also exceeded its expectation of deploying 550-600 MW in the reported quarter.

Financial Position

SunPower had cash and cash equivalents of $167.3 million as of Jun 30, 2019, compared with $309.4 million as of Dec 30, 2018.

Long-term debt was $102.3 million as of Jun 30, 2019, compared with $40.5 million as of Dec 31, 2018.

In the first half of 2019, net cash outflow from operating activities totaled $30.8 million against the cash inflow of $349.2 million in the first half of 2018.

SunPower Corporation Price, Consensus and EPS Surprise

Outlook

For third-quarter 2019, the company expects to generate adjusted revenues of $430-$470 million. Adjusted gross margin is estimated to be 8-12%. Additionally, it anticipates deployment of 550-600 MW in the same period.

SunPower still expects to generate adjusted revenues of $1.8-$2.0 billion and deploy 2.05-2.25 gigawatts in 2019. However, it has raised adjusted EBITDA projections for the full year from the earlier guidance of $90-$100 million to $100-$120 million.

Zacks Rank

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

Upcoming Solar Releases

SolarEdge Technologies. (SEDG - Free Report) is slated to release second-quarter 2019 results on Aug 6.

Sunrun Inc. (RUN - Free Report) is scheduled to release second-quarter 2019 results on Aug 7.

Sunworks, Inc. is scheduled to release second-quarter 2019 results on Aug 2.

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