SunPower (SPWR) Q3 Loss Narrower Than Expected, Revenues Fall


SunPower Corp

.

SPWR

incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents. The company reported adjusted earnings of 6 cents per share in third-quarter 2019.

Excluding one-time adjustments, the company reported GAAP earnings of 26 cents per share against the prior-year quarter’s loss of 11 cents per share.

Operational Results

During the quarter under review, SunPower’s adjusted revenues came in at $274.8 million, surpassing the Zacks Consensus Estimate of $233 million by 18%. However, the top line declined 8.9% from the year-ago quarter’s $301.8 million.

The year-over-year decline can be primarily attributed to decreased revenues from solar power systems and residential leasing.

Total operating losses in the quarter were $2 million compared to the operating losses of $19.8 million reported in the year-ago quarter.

Total operating expenses amounted to $39.2 million during the third quarter compared to the operating expenses of $65.3 million in the year-ago quarter.

SunPower Corporation Price, Consensus and EPS Surprise

Financial Position

SunPower had cash and cash equivalents of $324.7 million as of Sep 27, 2020, compared with $302 million as of Dec 29, 2019.

Long-term debt was $68.4 million as of Sep 27, 2020, compared with $112.3 million as of Dec 29, 2019.

In the first nine months of 2020, net cash outflow from operating activities totaled $202.5 million compared to the cash outflow of $266.2 million in the first nine months of 2019.

Q4 and 2020 Guidance

For fourth-quarter 2020, the company expects to generate adjusted revenues of $330-$370 million. The Zacks Consensus Estimate for full-year revenues stands at $348.7 million, below the midpoint of the company-projected view.

For 2020, the company expects to generate adjusted revenues of $1.12-$1.16 billion. The Zacks Consensus Estimate for full-year revenues stands at $1.19 billion, above the company’s projected view.

Zacks Rank

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


Enphase Energy


ENPH

reported third-quarter 2020 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 25%.


First Solar


FSLR

reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.

Upcoming Solar Releases


SolarEdge Technologies


SEDG

carries a Zacks Rank #3 (Hold) and is set to release third-quarter 2020 results on Nov 2.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.



See the pot stocks we’re targeting >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report


To read this article on Zacks.com click here.


Zacks Investment Research