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SunPower (SPWR) Q2 Loss Narrower Than Expected, Sales Top

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SunPower Corp. (SPWR - Free Report) incurred second-quarter 2018 adjusted loss of a penny per share, narrower than the Zacks Consensus Estimate of a loss of 32 cents. In the year-ago quarter, the company reported loss of 35 cents.

Excluding one-time adjustments, the company incurred a GAAP loss of $3.17 per share, wider than the year-ago quarter’s loss of 65 cents.

Operational Results

During the quarter under review, SunPower reported adjusted revenues of $447.2 million, surpassing the Zacks Consensus Estimate of $420 million by 6.5%. Also, the top line surged 31% from the year-ago figure of $341.5 million.

Total operating expenses were up 79.5% to $167.7 million due to higher research and development expenses as well as impairment of residential lease assets.

SunPower Corporation Price, Consensus and EPS Surprise

Financial Position

SunPower had cash and cash equivalents of $256.7 million as of Jun 30, 2018 compared with $435.1 million as of Dec 31, 2017.

Long-term debt was $463.7 million as of Jun 30, 2018 compared with $430.6 million as of Dec 31, 2017.

In the second quarter, net cash outflow from operating activities was $122.1 million compared with cash outflow of $161.8 million in the year-ago period.


The company expects adjusted revenues in the range of $450-$500 million for third-quarter 2018.  Adjusted gross margin is estimated in the 6-8% band. The company anticipates deployment of 400-430 megawatts in the period.

SunPower continues to project 2018 adjusted revenues in the range of $1.8-$2.2 billion.

Zacks Rank

SunPower currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Solar Releases

Hanwha Q CELLS Co., Ltd. is scheduled to release second-quarter 2018 earnings on Aug 9. The Zacks Consensus Estimate for the quarterly earnings is pegged at 11 cents per share.

Azure Power Global Ltd. (AZRE - Free Report) is scheduled to release first-quarter fiscal 2018 earnings on Aug 10. The consensus estimate for the bottom line in the quarter to be reported stands at a loss of 14 cents per share.

Real Goods Solar, Inc. (RGSE - Free Report) is scheduled to release second-quarter 2018 earnings on Aug 8. The consensus mark for the to-be-reported quarter’s earnings is 33 cents per share.

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