SunPower Corp. (SPWR - Free Report) incurred adjusted loss of 41 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 40 cents. The company had incurred a loss of 20 cents per share a year ago.
Excluding one-time adjustments, the company incurred a GAAP loss of 63 cents per share, narrower than the prior-year quarter’s loss of 83 cents.
During the quarter under review, SunPower’s adjusted revenues came in at $411.6 million, missing the Zacks Consensus Estimate of $425 million by 3%. However, the top line improved 3.2% from the year-ago quarter’s $398.9 million. The reported figure also exceeded the company’s expectation of generating $350-390 million revenues in the first quarter. The year-over-year upside in revenues can be primarily attributed to construction revenues from solar services contracts.
Furthermore, total operating expenses in the quarter declined 44.5% to $80.3 million compared with that in the first quarter of 2018. Notably, lower expenses for impairment of residential lease assets led to the downturn.
Also, a gain from business divestiture caused reduction in operating expenses.
These apart, SunPower made deployment of 455 megawatts (MW) in the first quarter compared with 326 MW deployed in first-quarter 2018. It also exceeded the company’s expectation to deploy 360-400 MW in the reported quarter.
SunPower had cash and cash equivalents of $185.6 million as of Mar 31, 2019, compared with $309.4 million as of Dec 30, 2018.
Long-term debt was $71.6 million as of Mar 31, 2019, compared with $40.5 million as of Dec 31, 2018.
In the first quarter, net cash outflow from operating activities totaled $149 million compared with the year-ago quarter’s figure of $233.3 million.
For second-quarter 2019, the company expects to generate adjusted revenues of $420-$460 million. Adjusted gross margin is estimated to be 7-10%. Additionally, it anticipates deployment of 550-600 MW in the same period.
Meanwhile, SunPower still expects to generate adjusted revenues of $1.9-2.0 billion and deploy 1.9-2.1 gigawatts in 2019. However, it has raised adjusted EBITDA projections for the full year from the earlier guidance of $80-$110 million to $90-$100 million.
SunPower currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
First Solar Inc. (FSLR - Free Report) incurred a loss of 64 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents.
Sunrun Inc. (RUN - Free Report) incurred a loss of 12 cents per share in first-quarter 2019 against the Zacks Consensus Estimate of earnings of 32 cents.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2019 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by 3.2%.
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