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) Down 19.9% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for SunPower (SPWR - Free Report) . Shares have lost about 19.9% 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 Q2 Earnings Miss Estimates, Sales Rise Y/Y
SunPower reported a second-quarter 2023 adjusted loss of 13 cents per share compared to earnings of a cent per share in the prior-year period. The loss came in wider than the Zacks Consensus Estimate of a loss of 3 cents per share.
Including one-time adjustments, the company reported a GAAP loss of 17 cents per share compared with the prior-year quarter’s loss of 24 cents.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $461.3 million, while its GAAP revenues were $463.9 million. The Zacks Consensus Estimate was pegged at $478 million. The adjusted top line improved by 8.5% from the year-ago quarter’s $425 million.
Total operating expenses in the quarter decreased 10.2% year over year to $89.3 million. Lower SG&A expenses, and research and development expenses led to the downside.
Financial Position
SunPower had cash and cash equivalents of $114.1 million as of Jul 2, 2023 compared with $377 million as of Jan 1, 2023. The long-term debt was $305.7 million as of Jul 2, 2023 compared with $308 million as of Jan 1, 2023.
2023 Outlook
SunPower updated 2023 guidance. For 2023, SPWR now expects adjusted EBITDA in the range of $55-$75 million, down from the previous guidance range of $125-$155 million. Meanwhile, residential customers are now projected in the range of 70,000-90,000, down from the previously announced expectation in the band of 90,000-110,000.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -136.72% due to these changes.
VGM Scores
Currently, SunPower has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise SunPower has a Zacks Rank #5 (Strong Sell). We expect a below 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) Down 19.9% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for SunPower (SPWR - Free Report) . Shares have lost about 19.9% 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 Q2 Earnings Miss Estimates, Sales Rise Y/Y
SunPower reported a second-quarter 2023 adjusted loss of 13 cents per share compared to earnings of a cent per share in the prior-year period. The loss came in wider than the Zacks Consensus Estimate of a loss of 3 cents per share.
Including one-time adjustments, the company reported a GAAP loss of 17 cents per share compared with the prior-year quarter’s loss of 24 cents.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $461.3 million, while its GAAP revenues were $463.9 million. The Zacks Consensus Estimate was pegged at $478 million. The adjusted top line improved by 8.5% from the year-ago quarter’s $425 million.
Total operating expenses in the quarter decreased 10.2% year over year to $89.3 million. Lower SG&A expenses, and research and development expenses led to the downside.
Financial Position
SunPower had cash and cash equivalents of $114.1 million as of Jul 2, 2023 compared with $377 million as of Jan 1, 2023. The long-term debt was $305.7 million as of Jul 2, 2023 compared with $308 million as of Jan 1, 2023.
2023 Outlook
SunPower updated 2023 guidance. For 2023, SPWR now expects adjusted EBITDA in the range of $55-$75 million, down from the previous guidance range of $125-$155 million. Meanwhile, residential customers are now projected in the range of 70,000-90,000, down from the previously announced expectation in the band of 90,000-110,000.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -136.72% due to these changes.
VGM Scores
Currently, SunPower has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise SunPower has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.