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SunPower Corp (SPWR) to Post Q2 Earnings: What's in Store?

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SunPower Corporation (SPWR - Free Report) is set to report second-quarter 2021 results on Aug 3, after market close.

In the trailing four quarters, it came up with an earnings surprise of 35.87%, 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 is expected to have boosted its revenues in the second quarter. During the first-quarter earnings call, SunPower announced that it expects its residential and light commercial volumes to register growth of more than 50% on a year-over-year basis during the second quarter. This might have added an impetus to its top-line growth in the soon-to-be-reported quarter.

Also, we remain optimistic about the company’s second-quarter revenue performance, considering the strong booking growth that the stock has been witnessing for its residential business lately.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $329 billion.

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

Also, during the first-quarter earnings call, the company revealed its expectation of a profitable second quarter, led by better project execution and increasing Helix storage installations. This is likely to have also boosted its earnings growth in the soon-to-be-reported quarter.

In line with this, the Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at 3 cents, implying a significant improvement from the year-ago quarter’s reported loss of 22 cents.

SunPower Corporation Price and EPS Surprise

Earnings Whispers

Our proven model predicts 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.

Earnings ESP: The company’s Earnings ESP is +89.47%. 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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Solar Releases

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

SolarEdge Technologies (SEDG - Free Report) is set to report second-quarter 2021 results on Aug 2

A Recent Solar Release

Enphase Energy (ENPH - Free Report) reported second-quarter 2021 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 42 cents by 26.2%.