How Has SPWR Performed 30 Days Post Earnings
It has been about a month since the last earnings report for SunPower (SPWR). Shares were flat in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent trend continue leading up to its next earnings release, or is SunPower due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
SunPower Q1 Earnings Surpass Estimates, Revenues Up Y/Y
SunPower Corp. reported first-quarter 2021 adjusted earnings of 5 cents per share, which surpassed the Zacks Consensus Estimate of break-even. The company had incurred a loss of 10 cents per share a year ago.
Excluding one-time adjustments, the company incurred a GAAP loss of 28 cents per share, wider than the prior-year quarter’s loss of a penny.
Operational Results
During the quarter under review, SunPower’s adjusted revenues came in at $306.4 million, surpassing the Zacks Consensus Estimate of $305 million by a mere 0.1%. Moreover, the top line improved 5.5% from the year-ago quarter’s $290.5 million. The year-over-year upside in revenues can be primarily attributed to higher sales of solar power systems, components and solar services.
Furthermore, total operating expenses in the quarter increased 6.8% year over year to $53.2 million. Notably, higher sales, general and administrative expenses and restructuring charges led to the increase.
Financial Position
SunPower had cash and cash equivalents of $213.1 million as of Apr 4, 2021, compared with $232.8 million as of Jan 3, 2021.
Long-term debt was $86.4 million as of Apr 4, 2021, compared with $56.4 million as of Jan 3, 2021.
In the first quarter, net cash outflow from operating activities totaled $40.4 million compared with the year-ago quarter’s $179.5 million.
Q2 Outlook
For second-quarter 2021, the company expects to generate adjusted revenues of $295-$345 million.
The Zacks Consensus Estimate for the same is pegged at $340.3 million, which lies near the higher end of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -114.29% due to these changes.
VGM Scores
Currently, SunPower has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, SunPower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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