It has been about a month since the last earnings report for SunPower (
SPWR Quick Quote SPWR - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is SunPower due for a breakout? 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 catalysts.
SunPower Q1 Earnings Miss Estimates, Sales Rise Y/Y
SunPower reported a first-quarter 2023 adjusted loss of 7 cents per share compared to earnings of 2 cents per share in the prior-year period. The loss came in steeper than the loss expectation of the Zacks Consensus Estimate.
Including one-time adjustments, the company reported a GAAP loss of 29 cents per share compared with the prior-year quarter’s loss of a cent.
During the quarter under review, SunPower’s adjusted revenues came in at $442.5 million, while its GAAP revenues were $440.9 million. The Zacks Consensus Estimate was pegged at $427 million. The adjusted top line improved by 31.7% from the year-ago quarter’s $336.1 million.
Total operating expenses in the quarter increased 18.1% year over year to $97.9 million. Higher SG&A expenses, and research and development expenses led to the upside.
SunPower had cash and cash equivalents of $116.5 million as of Apr 2, 2023 compared with $377 million as of Jan 1, 2023. The long-term debt was $155.9 million as of Apr 2, 2023 compared with $308 million as of Jan 1, 2023.
SunPower reaffirmed 2023 guidance. For 2023, SPWR expects adjusted EBITDA in the range of $125-$155 million. Meanwhile, residential customers are projected in the range of 90,000-110,000.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -57.14% due to these changes.
At this time, SunPower has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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.
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.
Performance of an Industry Player
SunPower is part of the Zacks Solar industry. Over the past month, First Solar (
FSLR Quick Quote FSLR - Free Report) , a stock from the same industry, has gained 21.7%. The company reported its results for the quarter ended March 2023 more than a month ago.
First Solar reported revenues of $548.29 million in the last reported quarter, representing a year-over-year change of +49.4%. EPS of $0.40 for the same period compares with -$0.41 a year ago.
For the current quarter, First Solar is expected to post earnings of $1.24 per share, indicating a change of +138.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -9.4% over the last 30 days.
First Solar has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.