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SunPower (SPWR) to Post Q3 Earnings: What's in the Cards?
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SunPower Corporation (SPWR - Free Report) is set to report third-quarter 2019 results on Oct 30, after market close.
In the last reported quarter, the company posted a negative earnings surprise of 144.44%.
Let’s discuss the factors that are likely to get reflected on the upcoming quarterly results.
Factors at Play
In the third quarter, SunPower launched Equinox Storage — a home solar battery system — made especially for the Equinox Solar solution. The company also introduced its Design Studio platform, which is a web application to deliver customizable home solar designs within seconds. The introduction of such products is expected to have broadened the company’s existing customer base and thereby boosting the top line in the third quarter.
Moreover, in July, SunPower initiated shipments of its Maxeon 5 solar panels into the U.S. residential market, where it has been witnessing very strong demand. These shipments are expected to have made a favorable contribution to the company’s quarterly sales.
In line with this, the Zacks Consensus Estimate for third-quarter sales is pegged at $464.3 million, which indicates 4.7% rise from the year-ago quarter’s reported figure. Sales estimate is below the company’s guidance, which is in the range of $450-$490 million.
SunPower’s third-quarter gross margin is expected to have been favorably impacted by strong demand across its global DG business and introduction of new products. During the second quarter earnings call, the company announced that it expects to witness improved margin in the second half of 2019 on strong backlog and improving cost structure. The trend is expected to have boosted the company’s bottom line in the third quarter.
In line with this, the Zacks Consensus Estimate for the company’s third-quarter loss is pegged at a penny, which suggests an improvement of 96.5% from the year-ago quarter’s reported loss of 29 cents.
Earnings Whispers
Our proven model doesn’t conclusively predict an earnings beat for SunPower this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Enphase Energy (ENPH - Free Report) carries a Zacks Rank #3 and is scheduled to report third-quarter 2019 results on Oct 29.
Sunnova Energy International (NOVA - Free Report) has a Zacks Rank #2 and is expected to release third-quarter results on Oct 31.
Vivint Solar carries a Zacks Rank #3 and is expected to post third-quarter 2019 results on Nov 06.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
SunPower (SPWR) to Post Q3 Earnings: What's in the Cards?
SunPower Corporation (SPWR - Free Report) is set to report third-quarter 2019 results on Oct 30, after market close.
In the last reported quarter, the company posted a negative earnings surprise of 144.44%.
Let’s discuss the factors that are likely to get reflected on the upcoming quarterly results.
Factors at Play
In the third quarter, SunPower launched Equinox Storage — a home solar battery system — made especially for the Equinox Solar solution. The company also introduced its Design Studio platform, which is a web application to deliver customizable home solar designs within seconds. The introduction of such products is expected to have broadened the company’s existing customer base and thereby boosting the top line in the third quarter.
Moreover, in July, SunPower initiated shipments of its Maxeon 5 solar panels into the U.S. residential market, where it has been witnessing very strong demand. These shipments are expected to have made a favorable contribution to the company’s quarterly sales.
In line with this, the Zacks Consensus Estimate for third-quarter sales is pegged at $464.3 million, which indicates 4.7% rise from the year-ago quarter’s reported figure. Sales estimate is below the company’s guidance, which is in the range of $450-$490 million.
SunPower’s third-quarter gross margin is expected to have been favorably impacted by strong demand across its global DG business and introduction of new products. During the second quarter earnings call, the company announced that it expects to witness improved margin in the second half of 2019 on strong backlog and improving cost structure. The trend is expected to have boosted the company’s bottom line in the third quarter.
In line with this, the Zacks Consensus Estimate for the company’s third-quarter loss is pegged at a penny, which suggests an improvement of 96.5% from the year-ago quarter’s reported loss of 29 cents.
Earnings Whispers
Our proven model doesn’t conclusively predict an earnings beat for SunPower this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SunPower carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
SunPower Corporation Price and EPS Surprise
SunPower Corporation price-eps-surprise | SunPower Corporation Quote
Upcoming Solar Releases
Enphase Energy (ENPH - Free Report) carries a Zacks Rank #3 and is scheduled to report third-quarter 2019 results on Oct 29.
Sunnova Energy International (NOVA - Free Report) has a Zacks Rank #2 and is expected to release third-quarter results on Oct 31.
Vivint Solar carries a Zacks Rank #3 and is expected to post third-quarter 2019 results on Nov 06.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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