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SunPower (SPWR) Reports Q3 Earnings, Revenues Decline Y/Y

SunPower Corp. SPWR reported third-quarter 2017 earnings of 21 cents per share. The Zacks Consensus Estimate stood at a loss of 36 cents. In the year-ago period, the company had reported earnings of 88 cents per share.

The results include adjustments related to the sale-leaseback transactions, stock-based compensation, cost of above-market polysilicon, tax effect and other adjustment costs and other non-GAAP adjustments.

On a GAAP basis, the company incurred a loss of 39 cents per share, narrower than the year-ago loss of 67 cents.

Operational Results

During the quarter, SunPower garnered revenues of $533.6 million that surpassed the Zacks Consensus Estimate of $363 million by 47%. However, reported revenues declined 30.7% from the year-ago figure of $770.1 million.

Total operating expenses were down 33.6% to $92.6 million, due to lower research and development, selling, general and administrative expenses and restructuring charges.

SunPower Corporation Price, Consensus and EPS Surprise

SunPower Corporation Price, Consensus and EPS Surprise | SunPower Corporation Quote

Financial Position

SunPower had cash and cash equivalents of $275 million as of Oct 1 compared with $425.3 million as of Jan 1, 2017. Long-term debt increased to $601.1 million from $451.2 million at 2016 end.

In the third quarter, net cash outflow was $26.6 million from operating activities compared with $128.3 million in the year-ago period.

Guidance

On a non-GAAP basis, the company expects revenues in the range of $800-$850 million for the fourth quarter. Gross margin is estimated to be in 13-15% band for the quarter.

SunPower now anticipates revenues for 2017 to lie between $2.10 billion and $2.15 billion compared with the prior guidance in $2.1–$2.3 billion band.

The company expects to deploy 420-450 megawatts in the next quarter and 1.37-1.40 gigawatts (GW) in 2017 compared with 1.30-1.45 GW, projected earlier.

Recent Peer Releases

First Solar Inc. FSLR reported third-quarter 2017 adjusted earnings of $1.95 per share, beating the Zacks Consensus Estimate of 85 cents by a whopping 129.4%. The reported number also improved 60% from the prior-year figure of $1.22.

8point3 Energy Partners LP CAFD reported earnings of 27 cents per share in third-quarter fiscal 2017 (ended Aug 31), missing the Zacks Consensus Estimate of 65 cents by 58.5%. The bottom line also declined 40.7% from 38 cents in the year-ago period.

An Upcoming Peer Release

Canadian Solar, Inc. CSIQ is scheduled to release third-quarter 2017 results on Nov 9.

Zacks Rank

SunPower carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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