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SunPower Lowers 2023 Guidance Despite Signs of Recovery in Beaten Down Solar Stock

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SunPower CorpΒ 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.

β€œWe 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, β€œThere 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.

Keywords: solar stock, SunPower Corp, revenue decline, adjusted EPS loss, adjusted gross margin, adjusted EBITDA, consumer demand, lower-than-expected demand, delayed revenue recognition, recovery signs, battery and financial products, guidance revision, incremental customers, stock price action.

Document Level Sentiment: 9/10
Sentence Level Sentiment: 9/10

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