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SunPower (SPWR) Q3 Earnings Top Estimates, Revenues Rise Y/Y

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Shares of SunPower Corporation (SPWR - Free Report) declined 0.4% to reach $32.59 on Nov 5, reflecting investors' negative sentiments following its third-quarter 2021 results.

The company reported third-quarter 2021 adjusted earnings of 6 cents per share, which surpassed the Zacks Consensus Estimate of 2 cents by a whopping 200%. The bottom line compared favorably with the year-ago quarter’s loss of 4 cents.

Excluding one-time adjustments, GAAP loss was 49 cents per share, against the prior-year quarter’s earnings of 57 cents.

Operational Results

During the quarter under review, SunPower’s revenues were $323.6 million, which lagged the Zacks Consensus Estimate of $326 million by 0.6%. However, the top line improved 17.8% from the year-ago quarter’s $274.8 million. The year-over-year upside in revenues can be attributed to strong residential demand.

Total operating expenses in the quarter increased 36.3% year over year to $53.5 million. Higher sales, general and administrative expenses led to the upside.

SunPower Corporation Price, Consensus and EPS Surprise

SunPower Corporation Price, Consensus and EPS Surprise

SunPower Corporation price-consensus-eps-surprise-chart | SunPower Corporation Quote

Financial Position

SunPower had cash and cash equivalents of $268.6 million as of Oct 3, 2021, compared with $232.8 million as of Jan 3, 2021.

Long-term debt was $42.1 million as of Oct 3, 2021, compared with $56.4 million as of Jan 3, 2021.

Q4 & 2021 Outlook

For fourth-quarter 2021, the company expects to generate revenues of $330-$380 million, which excludes revenues from CIS and Legacy business. Revenues for the CIS and Legacy business are expected in the range of $31 million to $41 million. Fourth-quarter GAAP net income guidance, which includes all segments, is expected in the range of loss of $5 million to earnings of $15 million.

For 2021, the company expects to generate adjusted revenues below the prior guidance of $1.41-$1.49 billion, primarily due to CIS project schedule delays. The Zacks Consensus Estimate for 2021 revenues is pegged at $1.33 billion.

Zacks Rank

SunPower currently hasa Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Release

Enphase Energy (ENPH - Free Report) reported third-quarter adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%.

First Solar Inc. (FSLR - Free Report) reported third-quarter earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents for the June-end quarter.

Sunrun (RUN - Free Report) reported third-quarter adjusted earnings of 11 cents, which outpaced the Zacks Consensus Estimate of 5 cents per share.

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