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-eps-surprise-chart | SunPower Corporation Quote
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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