SunPower Corp SPWR reported a decline of 9.3% in third-quarter FY23 revenue compared to the previous year, amounting to $432.00 million. This missed the consensus expectation of $453.25 million.

The residential solar technology and energy services provider recorded an adjusted EPS loss of $(0.12), failing to meet the consensus loss of $(0.00).

By adding 18,800 new customers, SPWR enters the fourth quarter with a backlog of 18,400 retrofit customers and 38,000 new homes customers.

The company’s adjusted gross margin decreased to 15.5% from the previous year’s figure of 22.4%.

Adjusted EBITDA dropped to $(0.78) million, down from $25.33 million compared to the previous year.

SunPower currently holds $103.7 million in cash and equivalents and has generated $51.08 million in operating cash flow.

“We are reducing our 2023 guidance due to lower-than-expected consumer demand as well as delayed revenue recognition from longer cycle times,” said Peter Faricy, CEO of SunPower.

Faricy continued, “There are also some early signs of recovery in September and October, and our battery and financial products customer attachment rates are at all-time highs.”

Outlook: SunPower revised its FY23 adjusted EBITDA guidance to $(35) million – $(25) million, down from the previous estimate of $55 million – $75 million. Additionally, the company expects to add 70,000 – 80,000 incremental customers, marking a decrease from the previous estimate of 70,000 – 90,000.

The consensus for FY23 revenue stands at $1.81 billion, with an anticipated EPS loss of $(0.15).

Since the beginning of the year, SPWR shares have experienced a significant decline, losing 75.1% of their value.

Price action: On Wednesday’s last check, SPWR shares were trading 9.37% lower at $3.87.