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SunPower (SPWR) Q4 Loss Narrower than Expected, Revenues Down

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SunPower Corp. reported fourth-quarter 2018 adjusted loss of 21 cents per share, narrower than the Zacks Consensus Estimate of a loss of 38 cents. However, in the year-ago period, the company delivered earnings of 25 cents per share.

Excluding one-time adjustments, the company incurred a GAAP loss of $1.12 per share, narrower than the year-ago quarter’s loss of $4.10.

For 2018, the company incurred loss of  72 cents per share, wider than 25 cents incurred in the year-ago quarter. However, the figure came in narrower than the Zacks Consensus loss Estimate of 97 cents.

Operational Results

During the quarter under review, SunPower reported adjusted revenues of $525.4 million, which missed the Zacks Consensus Estimate of $587 million by 10.5%. Also, the top line declined 36.2% from the year-ago quarter’s $824 million.

The downside in revenues during the quarter was on account of low revenue figures registered by SunPower Technologies business unit compared with the year-ago quarter’s figures.

In 2018, total revenues decreased 14.7% year over year to $1,814.9 million. Full-year revenues also missed the Zacks Consensus Estimate of $1,870 million by 2.9%.

Total operating expenses in the quarter declined 79.3% to $149.3 million compared with that in the fourth quarter of 2017. The reduction was primarily due to lower research and development expenses, decrease in sales, general and administrative expenses and low expenses incurred on
impairment of residential lease assets.

Financial Position

SunPower had cash and cash equivalents of $309.4 million as of Dec 30, 2018, compared with $435.1 million as of Dec 31, 2017.

Long-term debt was $40.5 million as of Dec 30, 2018, compared with $430.6 million as of Dec 31, 2017.

In the third quarter, net cash outflow from operating activities was $26.3 million against the cash inflow of $47.9 million in the year-ago period.

 

SunPower Corporation Price, Consensus and EPS Surprise

The company expects to generate adjusted revenues of $350-390 million in the first quarter of 2019. Adjusted gross margin is estimated to be 3-5%. The company also anticipates deployment of 360-400 megawatts in the period.

SunPower expects to generate adjusted revenues of $1.9-2.0 billion in 2019.  Adjusted EBITDA is estimated to be $80-$110 million. The company also anticipates deployment of 1.9-2.1 gigawatts in the period.

Zacks Rank

SunPower currently carries a Zacks Rank #3 (Hold).

Upcoming Solar Releases

Canadian Solar Inc. (CSIQ - Free Report) is scheduled to release fourth-quarter 2018 results on March 21. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enphase Energy, Inc. (ENPH - Free Report) is scheduled to release fourth-quarter 2018 results on Feb 26. The company carries a Zacks Rank #3.

First Solar, Inc. (FSLR - Free Report) is scheduled to release fourth-quarter 2018 results on Feb 21. The company carries a Zacks Rank #3.

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