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SunPower Corp (SPWR) to Post Q1 Earnings: What's in Store?

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SunPower Corporation (SPWR - Free Report) is set to report first-quarter 2021 results on May 5, after market close.

In the last reported quarter, the company witnessed an earnings surprise of 40%. In the trailing four quarters, SunPower came up with an earnings surprise of 40%, on average.

Let's take a closer look at the factors influencing the company’s upcoming quarterly results.

Factors Under Consideration

Strong megawatt growth in the company’s residential retrofit and new homes businesses might have boosted its revenues in the soon-to-be-reported quarter. Further, the consistent installation of SunPower’s SunVault storage solution in volumes, driven by rising demand in recent times, is likely to have contributed favorably to its top-line performance, during the first quarter.  

Also, with respect to its Residential and Light Commercial products, the company has lately expanded its sales channels extensively to increase market access and profitability. This might have boosted revenues in the first quarter as well.

The company witnessed a significant increase in gross margin per watt during the fourth quarter in its residential business, driven by benefits from improvements in residential loan and lease economics, and the execution of its cost roadmaps. We expect this trend to have continued and favorably impacted the bottom line in the first quarter.

Also, during the fourth-quarter earnings call, the company revealed its expectation of a profitable first quarter as its businesses through Commercial and Industrial Solutions segment will be less linear, given its longer project cycle times.

In line with this, the Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at break-even, implying an improvement from the year-ago quarter’s reported loss of 10 cents.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for SunPower this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.

Earnings ESP: The company’s Earnings ESP is +400.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: SunPower currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

SunPower Corporation Price and EPS Surprise

An Upcoming Solar Release

Sunrun (RUN - Free Report) is set to release first-quarter 2021 results on May 5.

Recent Solar Releases

Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents by 36.6%.

First Solar Inc. (FSLR - Free Report) reported first-quarter 2021 adjusted earnings of $1.96 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 96%.

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