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SunPower (SPWR) Lags Earnings & Revenue Estimates in Q3
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SunPower Corp. (SPWR - Free Report) reported third-quarter 2016 adjusted earnings of 56 cents per share, missing the Zacks Consensus Estimate of 67 cents by 16.4%. Reported earnings were, however, much higher than the year-ago figure of 3 cents.
Adjustments were related to the sale of projects to 8point3 Energy Partners – a holding company formed in 2015 with First Solar, Inc. (FSLR - Free Report) , sale of operating lease assets, stock-based compensation, amortization of intangible assets, goodwill impairment, restructuring expense, tax effect and other adjustment costs.
On a GAAP basis, the company incurred a loss of 29 cents per share, narrower than the year-ago GAAP loss of 51 cents.
During the quarter, SunPower garnered revenues of $770.1 million, missing the Zacks Consensus Estimate of $776 million by 0.8%. Reported revenues, however, surged 74.5% from the year-ago figure of $441.4 million.
The company’s gross margin expanded 230 basis points (bps) to 20% from 17.7% in the prior-year quarter. Total operating expenses were up 30.5% to $139.4 million owing to higher research and development expenses, and restructuring expenses.
SunPower had cash and cash equivalents of $383.9 million as of Oct 2, 2016, compared with $954.5 million as of Jan 3, 2016. Long-term debt increased to $455.8 million from $478.9 million at 2015 end.
In the third quarter, net cash outflow was $128.3 million from operating activities, compared to outflow of $103.9 million in the year-ago period.
Guidance
On a non-GAAP basis, the company expects revenues in the range of $1.0–$1.2 billion for the fourth quarter of 2016 and $2.6–$2.8 billion for the full year. Gross margin is estimated to be 1–3% for the fourth quarter and 9–11% for the full year.
SunPower expects to deploy 235–265 megawatts (“MW”) in the fourth quarter and 1,325–1,355 MW in 2016.
A Peer Release
SolarCity Corp. posted an adjusted loss of $2.27 per share in the third quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.35 per share. However, earnings were wider than the year-ago loss of $2.10 per share.
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SunPower (SPWR) Lags Earnings & Revenue Estimates in Q3
SunPower Corp. (SPWR - Free Report) reported third-quarter 2016 adjusted earnings of 56 cents per share, missing the Zacks Consensus Estimate of 67 cents by 16.4%. Reported earnings were, however, much higher than the year-ago figure of 3 cents.
Adjustments were related to the sale of projects to 8point3 Energy Partners – a holding company formed in 2015 with First Solar, Inc. (FSLR - Free Report) , sale of operating lease assets, stock-based compensation, amortization of intangible assets, goodwill impairment, restructuring expense, tax effect and other adjustment costs.
On a GAAP basis, the company incurred a loss of 29 cents per share, narrower than the year-ago GAAP loss of 51 cents.
Operational Results
During the quarter, SunPower garnered revenues of $770.1 million, missing the Zacks Consensus Estimate of $776 million by 0.8%. Reported revenues, however, surged 74.5% from the year-ago figure of $441.4 million.
The company’s gross margin expanded 230 basis points (bps) to 20% from 17.7% in the prior-year quarter. Total operating expenses were up 30.5% to $139.4 million owing to higher research and development expenses, and restructuring expenses.
SUNPOWER CORP-A Price, Consensus and EPS Surprise
SUNPOWER CORP-A Price, Consensus and EPS Surprise | SUNPOWER CORP-A Quote
Financial Position
SunPower had cash and cash equivalents of $383.9 million as of Oct 2, 2016, compared with $954.5 million as of Jan 3, 2016. Long-term debt increased to $455.8 million from $478.9 million at 2015 end.
In the third quarter, net cash outflow was $128.3 million from operating activities, compared to outflow of $103.9 million in the year-ago period.
Guidance
On a non-GAAP basis, the company expects revenues in the range of $1.0–$1.2 billion for the fourth quarter of 2016 and $2.6–$2.8 billion for the full year. Gross margin is estimated to be 1–3% for the fourth quarter and 9–11% for the full year.
SunPower expects to deploy 235–265 megawatts (“MW”) in the fourth quarter and 1,325–1,355 MW in 2016.
A Peer Release
SolarCity Corp. posted an adjusted loss of $2.27 per share in the third quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.35 per share. However, earnings were wider than the year-ago loss of $2.10 per share.
Zacks Rank
Currently, SunPower has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>