U.S. markets closed
  • S&P 500

    3,941.48
    -32.27 (-0.81%)
     
  • Dow 30

    31,928.62
    +48.38 (+0.15%)
     
  • Nasdaq

    11,264.45
    -270.83 (-2.35%)
     
  • Russell 2000

    1,764.83
    -27.94 (-1.56%)
     
  • Crude Oil

    110.26
    -0.03 (-0.03%)
     
  • Gold

    1,865.50
    +0.10 (+0.01%)
     
  • Silver

    22.11
    +0.05 (+0.24%)
     
  • EUR/USD

    1.0738
    +0.0041 (+0.39%)
     
  • 10-Yr Bond

    2.7600
    -0.0990 (-3.46%)
     
  • GBP/USD

    1.2535
    -0.0053 (-0.42%)
     
  • USD/JPY

    126.8820
    -1.0060 (-0.79%)
     
  • BTC-USD

    29,551.17
    +318.44 (+1.09%)
     
  • CMC Crypto 200

    655.31
    -0.52 (-0.08%)
     
  • FTSE 100

    7,484.35
    -29.09 (-0.39%)
     
  • Nikkei 225

    26,748.14
    -253.38 (-0.94%)
     

Why Are SunPower Shares Trading Lower Today?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • SunPower Corp (NASDAQ: SPWR) sees fourth-quarter FY21 revenue within prior guidance of $361 million - $421 million against the consensus of $379.5 million.

  • SunPower sees $27 million of supplier-quality-related charges in Q4 and $4 million in Q1 of 2022 as it pursues recovery of costs from the suppliers.

  • The company intends to fund the charges with cash on hand. The company held cash and equivalents of $280.8 million as of October 3, 2021.

  • Excluding the charge, Q4 adjusted EBITDA results will likely be at the low end of SunPower's previously disclosed guidance range of $18 million - $41 million.

  • The factors affecting Q4 adjusted EBITDA include $6.5 million of Residential EBITDA effectively pushed into 2022 due to weather in California and COVID impacts. Another $3 million was invested in sales and marketing to rapidly expand SunPower's serviceable solar market to more customers in underpenetrated areas nationally.

  • Analyst Rating: JPMorgan analyst Mark Strouse lowered the price target on SunPower to $23 from $27 and reiterated an Underweight rating on the shares. The price target implies an upside of 21% to January 20, 2022, closing price of $19.02.

  • The analyst believes investor expectations are low heading into the Q4 alternative energy earnings season.

  • Near term, still challenging supply chain issues, geopolitical tensions, and a steady U.S. Investment Tax Credit over 2021 and 2022 will likely result in the delay of some utility-scale projects.

  • While the analyst believes residential solar is "relatively more immune" to these challenges, he says near-term visibility "remains somewhat limited" until a final determination regarding potential changes to California's net metering policy.

  • Strouse sees the space to remain volatile near term and generally expects visibility and margins to improve as the year progresses.

  • Price Action: SPWR shares traded lower by 16.8% at $15.83 on the last check Friday.

Latest Ratings for SPWR

Jan 2022

Truist Securities

Maintains

Hold

Jan 2022

Morgan Stanley

Upgrades

Underweight

Equal-Weight

Jan 2022

Raymond James

Upgrades

Market Perform

Outperform

View More Analyst Ratings for SPWR
View the Latest Analyst Ratings

See more from Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.