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SunPower (SPWR) Q3 Loss Narrower Than Expected, View Cut


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SunPower Corp. SPWR incurred third-quarter 2018 adjusted loss of 29 cents per share, narrower than the Zacks Consensus Estimate of a loss of 45 cents. However, in the year-ago period, the company delivered earnings of 21 cents per share.

Excluding one-time adjustments, the company incurred a GAAP loss of 64 cents per share, wider than the year-ago quarter's loss of 33 cents.

Operational Results

During the quarter under review, SunPower reported adjusted revenues of $443.4 million, which missed the Zacks Consensus Estimate of $473 million by 6.2%. Also, the top line declined 17% from the year-ago figure of $533.6 million.

The downside in revenues was on account of delayed international projects, which resulted in lower-than-expected Performance Series (P-Series) solar panel shipments.

Total operating expenses were down 2.9% to $90 million due to lower research and development expenses as well as impairment of residential lease assets.

SunPower Corporation Price, Consensus and EPS Surprise

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

Financial Position

SunPower had cash and cash equivalents of $220.8 million as of Sep 30, 2018 compared with $435.1 million as of Dec 31, 2017.

Long-term debt was $591.4 million as of Sep 30, 2018 compared with $430.6 million as of Dec 31, 2017.

In the third quarter, net cash outflow from operating activities was $161.7 million compared with cash outflow of $26.6 million in the year-ago period.

Guidance

The company expects to generate adjusted revenues in the range of $510-$610 million in fourth-quarter 2018.  Adjusted gross margin is estimated in the 6-8% band. The company also anticipates deployment of 425-475 megawatts in the period.

SunPower currently projects 2018 adjusted revenues in the band of $1.8-$1.9 billion compared with prior guidance range of $1.8-$2.2 billion.

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

Enphase Energy, Inc. ENPH is scheduled to release third-quarter 2018 earnings on Nov 6. The consensus estimates for the bottom line in the quarter to be reported stands at 4 cents per share.

Hanwha Q CELLS Co., Ltd. HQCL is scheduled to release third-quarter 2018 earnings on Nov 9. The Zacks Consensus Estimate for the quarterly earnings is pegged at 6 cents per share.

Canadian Solar Inc. CSIQ is scheduled to release third-quarter 2018 earnings on Nov 15. The consensus mark for the to-be-reported quarter's earnings is 46 cents per share.

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SunPower Corporation (SPWR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Business , Stocks
Referenced Symbols: SPWR , CSIQ , ENPH



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