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SunPower Corp (SPWR) to Post Q2 Earnings: What's in Store?

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SunPower Corporation (SPWR - Free Report) is set to report second-quarter 2019 results on Jul 31, after the market closes.

In the last reported quarter, the company witnessed a negative earnings surprise of 2.50%. However, the bottom line outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 42.49%.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

Earlier this year, SunPower introduced the world's most powerful home solar panels, A-Series panels, in markets across the United States, Europe and Australia. The panels are equipped to deliver 400 plus watt of power. Since its launch, the company has successfully enhanced its customer base. We expect shipments of this product to have driven its revenues in the second quarter.

However, the company’s recent decision to discontinue the development of large-scale solar power projects may have hurt its top and bottom-line performance in the to-be-reported quarter.

Moreover, SunPower’s gross margins are expected to remain under pressure on account of increased expenses it projects to incur in relation to the ramped-up production of the recently introduced products.

In line with this, the Zacks Consensus Estimate for the company’s second-quarter loss is pegged at 9 cents, indicating a huge decline from the year-ago quarter’s reported loss figure of a penny.

Earnings Whispers

Our proven model does not show that SunPower is likely to beat estimates in second-quarter 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. This is not the case here, as you will see below.

Earnings ESP: SunPower has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

SunPower Corporation Price and EPS Surprise


Upcoming Solar Releases

Enphase Energy (ENPH - Free Report) is scheduled to report second-quarter 2019 results on Jul 30.

Azure Power Global Ltd (AZRE - Free Report) is expected to post first-quarter fiscal 2020 results on Aug 14.

Sunrun (RUN - Free Report) is scheduled to release second-quarter 2019 results on Aug 7.

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