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SunPower (SPWR) Q3 Loss Narrower Than Expected, View Cut

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SunPower Corp. incurred third-quarter 2018 adjusted loss of 29 cents per share, narrower than the Zacks Consensus Estimate of a loss of 45 cents. However, in the year-ago period, the company delivered earnings of 21 cents per share.

Excluding one-time adjustments, the company incurred a GAAP loss of 64 cents per share, wider than the year-ago quarter’s loss of 33 cents.

Operational Results

During the quarter under review, SunPower reported adjusted revenues of $443.4 million, which missed the Zacks Consensus Estimate of $473 million by 6.2%. Also, the top line declined 17% from the year-ago figure of $533.6 million.

The downside in revenues was on account of delayed international projects, which resulted in lower-than-expected Performance Series (P-Series) solar panel shipments.

Total operating expenses were down 2.9% to $90 million due to lower research and development expenses as well as impairment of residential lease assets.

 

SunPower Corporation Price, Consensus and EPS Surprise

Financial Position

SunPower had cash and cash equivalents of $220.8 million as of Sep 30, 2018 compared with $435.1 million as of Dec 31, 2017.

Long-term debt was $591.4 million as of Sep 30, 2018 compared with $430.6 million as of Dec 31, 2017.

In the third quarter, net cash outflow from operating activities was $161.7 million compared with cash outflow of $26.6 million in the year-ago period.

Guidance

The company expects to generate adjusted revenues in the range of $510-$610 million in fourth-quarter 2018.  Adjusted gross margin is estimated in the 6-8% band. The company also anticipates deployment of 425-475 megawatts in the period.

SunPower currently projects 2018 adjusted revenues in the band of $1.8-$1.9 billion compared with prior guidance range of $1.8-$2.2 billion.

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.

Upcoming Solar Releases

Enphase Energy, Inc. (ENPH - Free Report) is scheduled to release third-quarter 2018 earnings on Nov 6. The consensus estimates for the bottom line in the quarter to be reported stands at 4 cents per share.

Hanwha Q CELLS Co., Ltd. is scheduled to release third-quarter 2018 earnings on Nov 9. The Zacks Consensus Estimate for the quarterly earnings is pegged at 6 cents per share.

Canadian Solar Inc. (CSIQ - Free Report) is scheduled to release third-quarter 2018 earnings on Nov 15. The consensus mark for the to-be-reported quarter’s earnings is 46 cents per share.

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