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) Up 0.5% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for SunPower (SPWR - Free Report) . Shares have added about 0.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SunPower due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
SunPower Q2 Loss Narrower Than Expected, Revenues Beat
SunPower Corp. incurred an adjusted loss of 22 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 42 cents. The adjusted loss in the quarter was in line with the year-ago quarter’s loss.
Excluding one-time adjustments, the company registered GAAP earnings of 11 cents per share compared with the prior-year quarter’s earnings of 75 cents.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $352.9 million, surpassing the Zacks Consensus Estimate of $315 million by 12%. However, the top line declined 19.1% from the year-ago quarter’s $436.3 million.
The year-over-year decline can be primarily attributed to decreased revenues from SunPower Energy Services and SunPower Technologies.
Total operating losses in the quarter were $37.6 million against an operating income of $66.2 million reported in the year-ago quarter. Total operating expenses amounted to $59.2 million during the second quarter.
Financial Position
SunPower had cash and cash equivalents of $235.3 million as of Jun 28, 2020, compared with $423 million as of Dec 29, 2019.
Long-term debt was $92.7 million as of Jun 28, 2020, compared with $113.8 million as of Dec 29, 2019.
In the first half of 2020, net cash inflow from operating activities totaled $20.7 million against the cash outflow of $81.1million in the first half of 2019.
Q3 Guidance
For third-quarter 2020, the company expects to generate adjusted revenues of $360-$400 million. The Zacks Consensus Estimate for full-year revenues stands at $376.50 million, below the midpoint of the company-projected view.
Adjusted gross margin is estimated to be 0-6%. Additionally, it anticipates deployments of 500-560 MW in the same period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, SunPower has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, SunPower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SunPower (SPWR) Up 0.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for SunPower (SPWR - Free Report) . Shares have added about 0.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SunPower due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
SunPower Q2 Loss Narrower Than Expected, Revenues Beat
SunPower Corp. incurred an adjusted loss of 22 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 42 cents. The adjusted loss in the quarter was in line with the year-ago quarter’s loss.
Excluding one-time adjustments, the company registered GAAP earnings of 11 cents per share compared with the prior-year quarter’s earnings of 75 cents.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $352.9 million, surpassing the Zacks Consensus Estimate of $315 million by 12%. However, the top line declined 19.1% from the year-ago quarter’s $436.3 million.
The year-over-year decline can be primarily attributed to decreased revenues from SunPower Energy Services and SunPower Technologies.
Total operating losses in the quarter were $37.6 million against an operating income of $66.2 million reported in the year-ago quarter. Total operating expenses amounted to $59.2 million during the second quarter.
Financial Position
SunPower had cash and cash equivalents of $235.3 million as of Jun 28, 2020, compared with $423 million as of Dec 29, 2019.
Long-term debt was $92.7 million as of Jun 28, 2020, compared with $113.8 million as of Dec 29, 2019.
In the first half of 2020, net cash inflow from operating activities totaled $20.7 million against the cash outflow of $81.1million in the first half of 2019.
Q3 Guidance
For third-quarter 2020, the company expects to generate adjusted revenues of $360-$400 million. The Zacks Consensus Estimate for full-year revenues stands at $376.50 million, below the midpoint of the company-projected view.
Adjusted gross margin is estimated to be 0-6%. Additionally, it anticipates deployments of 500-560 MW in the same period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, SunPower has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, SunPower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.