SunPower Firms; Adjusted Earnings Beat, Revenue in Line
SunPower (SPWR) - Get Report shares firmed Wednesday, after the solar-power company reported first-quarter adjusted earnings that beat estimates and revenue in line with expectations.
For the quarter the GAAP net loss was 28 cents a share, widened from 1 cent a share in the year-earlier quarter.
The latest adjusted earnings from continuing operations were a nickel a share.
Revenue was $306.4 million, up 5.5% from $290.5 million.
A survey of analysts by FactSet produced consensus estimates of a GAAP loss of 3 cents a share, or adjusted earnings of 2 cents a share, on revenue of $307.3 million.
The stock recently traded at $24.25, up 5.4%. It has dropped 42% over the past six months.
For all of 2021, the company kept its revenue-growth forecast at about 35%. It still expects adjusted earnings before interest, taxes, depreciation and amortization to grow more than 40% for the year.
SunPower expects GAAP revenue of $295 million to $345 million for the second quarter, compared with the FactSet analyst consensus of $336.3 million.
It projects second-quarter adjusted Ebitda of $16 million to $27 million, compared with the analyst consensus of $20.7 million.
The second-quarter estimates appear “modestly” below analyst forecasts, said Truist analyst Tristan Richardson, according to Bloomberg. He has a hold rating and a $42 target on the stock.
In April, SunPower Chief Executive Tom Werner retired after 18 years. The company appointed former Discovery (DISCA) - Get Report chief and Amazon (AMZN) - Get Report veteran Peter Faricy to succeed him.
"Peter's joining the company is a great new asset to SunPower,” said Patrick Pouyanne, chief executive of Total (TOT) - Get Report, the largest shareholder in SunPower.
Faricy's expertise and skills will enable SunPower "to further expand its customer approach and offerings in the U.S. market.”
TheStreet.com Founder Jim Cramer sounded a bullish note for SunPower on March 30, a few days after the retirement was announced.
