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 44.1% 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 44.1% in that time frame, outperforming 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 Q3 Loss Narrower Than Expected, Revenues Fall
SunPower Corp. the Zacks Consensus Estimate of a loss of 5 cents. The company reported adjusted earnings of 6 cents per share in third-quarter 2019.
Excluding one-time adjustments, the reported GAAP earnings of 26 cents per share against the prior-year quarter’s loss of 11 cents per share.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $274.8 million, surpassing the Zacks Consensus Estimate of $233 million by 18%. However, the top line declined 8.9% from the year-ago quarter’s $301.8 million.
The year-over-year decline can be primarily attributed to decreased revenues from solar power systems and residential leasing.
Total operating losses in the quarter were $2 million compared to the operating losses of $19.8 million reported in the year-ago quarter.
Total operating expenses amounted to $39.2 million during the third-quarter compared to the operating expenses of $65.3 million in the year-ago quarter.
Financial Position
SunPower had cash and cash equivalents of $324.7 million as of Sep 27, 2020, compared with $302 million as of Dec 29, 2019.
Long-term debt was $68.4 million as of Sep 27, 2020, compared with $112.3 million as of Dec 29, 2019.
In the first nine months of 2020, net cash outflow from operating activities totaled $202.5 million compared to the cash outflow of $266.2 million in the first nine months of 2019.
Q4 and Fiscal Year 2020 Guidance
For fourth-quarter 2020, the company expects to generate adjusted revenues of $330-$370 million. The Zacks Consensus Estimate for full-year revenues stands at $348.7 million, below the midpoint of the company-projected view.
For fiscal year 2020, the company expects to generate adjusted revenues of $1.12 billion-$1.16 billion. The Zacks Consensus Estimate for full-year revenues stands at $1.19 billion, above the company’s projected view.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 140% due to these changes.
VGM Scores
Currently, SunPower has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise SunPower has a Zacks Rank #2 (Buy). We expect an above average 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 44.1% 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 44.1% in that time frame, outperforming 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 Q3 Loss Narrower Than Expected, Revenues Fall
SunPower Corp. the Zacks Consensus Estimate of a loss of 5 cents. The company reported adjusted earnings of 6 cents per share in third-quarter 2019.
Excluding one-time adjustments, the reported GAAP earnings of 26 cents per share against the prior-year quarter’s loss of 11 cents per share.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $274.8 million, surpassing the Zacks Consensus Estimate of $233 million by 18%. However, the top line declined 8.9% from the year-ago quarter’s $301.8 million.
The year-over-year decline can be primarily attributed to decreased revenues from solar power systems and residential leasing.
Total operating losses in the quarter were $2 million compared to the operating losses of $19.8 million reported in the year-ago quarter.
Total operating expenses amounted to $39.2 million during the third-quarter compared to the operating expenses of $65.3 million in the year-ago quarter.
Financial Position
SunPower had cash and cash equivalents of $324.7 million as of Sep 27, 2020, compared with $302 million as of Dec 29, 2019.
Long-term debt was $68.4 million as of Sep 27, 2020, compared with $112.3 million as of Dec 29, 2019.
In the first nine months of 2020, net cash outflow from operating activities totaled $202.5 million compared to the cash outflow of $266.2 million in the first nine months of 2019.
Q4 and Fiscal Year 2020 Guidance
For fourth-quarter 2020, the company expects to generate adjusted revenues of $330-$370 million. The Zacks Consensus Estimate for full-year revenues stands at $348.7 million, below the midpoint of the company-projected view.
For fiscal year 2020, the company expects to generate adjusted revenues of $1.12 billion-$1.16 billion. The Zacks Consensus Estimate for full-year revenues stands at $1.19 billion, above the company’s projected view.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 140% due to these changes.
VGM Scores
Currently, SunPower has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise SunPower has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.