SunPower Corp. SPWR incurred an adjusted loss of 22 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 42 cents. The adjusted loss in the quarter was in line with the year-ago quarter’s loss.
Excluding one-time adjustments, the company registered GAAP earnings of 11 cents per share compared with the prior-year quarter’s earnings of 75 cents.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $352.9 million, surpassing the Zacks Consensus Estimate of $315 million by 12%. However, the top line declined 19.1% from the year-ago quarter’s $436.3 million.
The year-over-year decline can be primarily attributed to decreased revenues from SunPower Energy Services and SunPower Technologies.
Total operating losses in the quarter were $37.6 million against an operating income of $66.2 million reported in the year-ago quarter. Total operating expenses amounted to $59.2 million during the second quarter.
Financial Position
SunPower had cash and cash equivalents of $235.3 million as of Jun 28, 2020, compared with $423 million as of Dec 29, 2019.
Long-term debt was $92.7 million as of Jun 28, 2020, compared with $113.8 million as of Dec 29, 2019.
In the first half of 2020, net cash inflow from operating activities totaled $20.7 million against the cash outflow of $81.1million in the first half of 2019.
SunPower Corporation Price, Consensus and EPS Surprise
For third-quarter 2020, the company expects to generate adjusted revenues of $360-$400 million. The Zacks Consensus Estimate for full-year revenues stands at $376.50 million, below the midpoint of the company-projected view.
Adjusted gross margin is estimated to be 0-6%. Additionally, it anticipates deployments of 500-560 MW in the same period.
Zacks Rank
SunPower currently carries a Zacks Rank #4 (Sell).
Recent Solar Releases
Enphase Energy, Inc. ENPH reported second-quarter 2020 adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of 14 cents by 21.4%.
SolarEdge Technologies, Inc. SEDG reported second-quarter 2020 adjusted earnings of 97 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents by 40.6%.
An Upcoming Solar Release
ReneSola SOL carries a Zacks Rank #3 (Hold) and is expected to post second-quarter 2020 results soon. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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