SunPower Corp. (SPWR - Free Report) incurred second-quarter 2017 loss of 39 cents per share, narrower than the Zacks Consensus Estimate of a loss of 63 cents. In the year-ago period, the company had witnessed a loss of 33 cents.
The results include adjustments related to the sale of projects to 8point3 Energy Partners – a holding company formed in 2015 – along with First Solar, Inc. (FSLR - Free Report) , utility and power plant projects, stock-based compensation, amortization of intangible assets, restructuring expenses, cost of above-market polysilicon, tax effect and other adjustment costs.
On a GAAP basis, the company incurred a loss of 67 cents per share, wider than the year-ago loss of 51 cents.
During the quarter, SunPower garnered revenues of $337.4 million that surpassed the Zacks Consensus Estimate of $305 million by 10.6%. However, reported revenues declined 19.7% from the year-ago figure of $420.5 million.
Total operating expenses were down 19.6% to $93.4 million, due to lower research and development and selling, general and administrative expenses.
SunPower had cash and cash equivalents of $327.3 million as of Jul 2 compared with $425.3 million as of Jan 1, 2017. Long-term debt increased to $551 million from $451.2 million at 2016 end.
In the reported quarter, net cash outflow was $161.8 million from operating activities compared with $300.1 million in the year-ago period.
On a non-GAAP basis, the company expects revenues in the range of $320–$370 million for the third quarter. Gross margin is estimated to be in 5–7% range for the quarter.
It now anticipates revenues for 2017 to lie in between $2.1 billion and $2.3 billion compared with the prior guidance in $2.1–$2.6 billion band.
SunPower expects to deploy 405–435 megawatts in the next quarter and 1.30–1.45 gigawatts (GW) in 2017 compared with prior guidance range of 1.3–1.6 GW.
An Upcoming Peer Release
Canadian Solar, Inc. (CSIQ - Free Report) is scheduled to release second-quarter 2017 results on Aug 14.
Currently, SunPower carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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