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STOCK FUTURES JUMP, LED BY STELLAR ALPHABET, MICROSOFT EARNINGS

Results from 'Magnificent Seven' duo show cloud revenue boosted by strong AI demand

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

Zacks Equity Research

SunPower Corp. SPWR reported adjusted earnings of 22 cents per share in third-quarter 2019 in contrast to the Zacks Consensus Estimate of a loss of a penny. The company had incurred a loss of 29 cents per share in the year-ago quarter.

Excluding one-time adjustments, the company incurred GAAP loss of 11 cents per share compared with the prior-year quarter’s loss of 64 cents per share.

The year-over-year uptick can be attributed to solid revenues and gross profit growth witnessed by the company in the third quarter.

SunPower Corporation Price, Consensus and EPS Surprise

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

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

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Operational Results

During the quarter under review, SunPower’s adjusted revenues came in at $491.7 million, surpassing the Zacks Consensus Estimate of $470 million by 5.9%. Moreover, the top line improved 10.9% from the year-ago quarter’s $443.4 million.

The reported figure also exceeded the company’s expectation of $430-$470 million in revenues. The year-over-year upside can be primarily attributed to higher revenues from both SunPower Energy Services and SunPower Technologies business units.

Furthermore, the company recorded adjusted gross profit of $78.2 million, up a massive 274.5% from the year-ago quarter. Its adjusted gross margin expanded 1,240 basis points to 10.1%.

These apart, SunPower deployed 586 megawatts (MW) in the third quarter compared with 346 MW in third-quarter 2018.  The company exceeded the midpoint of its expected range of 550-600 MW in the reported quarter.

Financial Position

SunPower had cash and cash equivalents of $189 million as of Sep 29, 2019, compared with $309.4 million as of Dec 30, 2018.

Long-term debt was $48.5 million as of Sep 29, 2019, compared with $40.5 million as of Dec 31, 2018.

In the first nine months of 2019, net cash outflow from operating activities totaled $266.2 million compared with cash outflow of $517.1 million in the first nine months of 2018.

Outlook

For fourth-quarter 2019, the company expects to generate adjusted revenues of $520-$720 million. Adjusted gross margin is estimated to be 16-19%. Additionally, it anticipates deployment of 445-645 MW in the same period.

SunPower still expects to generate adjusted revenues of $1.9-$2.1 billion in 2019. The Zacks Consensus Estimate for full-year revenues, pegged at $1.98 billion, lies below the mid-point of the company guided range.

It currently projects 2019 deployment to be in the range of 2.1-2.3 gigawatts (GW) compared with the earlier guided range of 2.05-2.25 GW. However, it maintained its adjusted EBITDA projections for the full year in the range of $100-$120 million.

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

Canadian Solar, Inc. CSIQ, carrying a Zacks Rank #2 (Buy), is set to report third-quarter 2019 results on Nov 12.

JinkoSolar Holding Company Ltd JKS, carrying a Zacks Rank #2, is scheduled to come up with third-quarter 2019 results on Nov 19.

A Recent Solar Release

First Solar Inc FSLR reported third-quarter 2019 adjusted earnings of 29 cents per share, missing the Zacks Consensus Estimate of $1.06 by 72.6%. The figure, however, marked an improvement from prior-year quarter’s loss per share of 18 cents.

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SunPower Corporation (SPWR) : Free Stock Analysis Report
 
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First Solar, Inc. (FSLR) : Free Stock Analysis Report
 
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