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SunPower (SPWR) Q1 Loss Narrower Than Expected, Revenues Beat

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SunPower Corp. (SPWR - Free Report) incurred adjusted loss of 10 cents per share in first-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 21 cents. The company had incurred a loss of 41 cents per share a year ago.    

Excluding one-time adjustments, the company incurred a GAAP loss of a penny per share, narrower than the prior-year quarter’s loss of 63 cents.

Operational Results

During the quarter under review, SunPower’s adjusted revenues came in at $454.4 million, surpassing the Zacks Consensus Estimate of $442 million by 2.8%. Moreover, the top line improved 10.4% from the year-ago quarter’s $411.6 million. The year-over-year upside in revenues can be primarily attributed to higher sales of solar power systems, components and solar services.

Furthermore, total operating expenses in the quarter increased 2% to $82.9 million from that in the first quarter of 2019. Notably, higher research and development and sales, general and administrative expenses led to the increase.

Apart from these, SunPower made deployments of 580 megawatts (MW) in the first quarter compared with 455 MW deployed in first-quarter 2019, reflecting 27.5% year-over-year shipment growth. The company surpassed its expected range of 520-570 MW in the reported quarter.

SunPower Corporation Price, Consensus and EPS Surprise

Financial Position

SunPower had cash and cash equivalents of $205.4 million as of Mar 29, 2020, compared with $423 million as of Dec 29, 2019.

Long-term debt was $98.1 million as of Mar 29, 2020, compared with $113.8 million as of Dec 31, 2019.

In the first quarter, net cash outflow from operating activities totaled $179.5 million compared with the year-ago quarter’s $149 million.

Q2 Outlook

For second-quarter 2020, the company expects to generate adjusted revenues of $290-$330 million. Adjusted gross margin is estimated to be 0-6%. Additionally, it anticipates deployments of 340-400 MW in the same period.

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.

Recent Solar Releases

Enphase Energy (ENPH - Free Report) reported first-quarter 2020 adjusted earnings of 38 cents per share, which surpassed the Zacks Consensus Estimate of 32 cents by 18.8%. The bottom line also surged a massive 375% from 8 cents reported in the prior-year quarter.

SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2020 adjusted earnings of $1.03 per share, which missed the Zacks Consensus Estimate of $1.20 by 14.2%. The bottom-line figure, however, surged 47.1% from 70 cents reported in the prior-year quarter.

First Solar (FSLR - Free Report) reported first-quarter 2020 adjusted earnings of 85 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 254.2%. The bottom line also grew from the year-ago quarter's loss of 64 cents per share.

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