Why Is SunPower (SPWR) Up 7.9% Since Last Earnings Report?

·3 min read

It has been about a month since the last earnings report for SunPower (SPWR). Shares have added about 7.9% in that time frame, outperforming the S&P 500.

Will the recent positive 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 the most recent earnings report in order to get a better handle on the important drivers.

SunPower Q2 Earnings Beat Estimates, Revenues Rise Y/Y

SunPower reported second-quarter 2022 adjusted earnings of 3 cents per share. The bottom line marked a deterioration from the year-ago quarter’s earnings of 7 cents per share.

The Zacks Consensus Estimate for second-quarter earnings was a penny.

Excluding one-time adjustments, the company reported a GAAP loss of 24 cents per share against the prior-year quarter’s earnings of 46 cents per share.

Operational Results

During the quarter under review, SunPower’s adjusted revenues came in at $414.1 million, while its GAAP revenues were $417.8 million. Revenues surpassed the Zacks Consensus Estimate of $363 million by 14%.

Moreover, the adjusted top line improved by 62.9% from the year-ago quarter’s $254.1 million.

Total operating expenses in the quarter increased 109.3% year over year to $99.5 million. Higher SG&A expenses and research and development expenses led to the upside.

Financial Position

SunPower had cash and cash equivalents of $206.4 million as of Jul 3, 2022 compared with $123.7 million as of Jan 3, 2021.

The long-term debt was $54.1 million as of Jul 3, 2022 compared with $0.4 million as of Jan 3, 2021.

2022 Outlook

For 2022, SPWR continues to expect adjusted EBITDA in the range of $90-$110 million, while residential customers are projected in the range of 73,000-80,000.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -54.22% due to these changes.

VGM Scores

Currently, SunPower has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.


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.

Performance of an Industry Player

SunPower is part of the Zacks Solar industry. Over the past month, First Solar (FSLR), a stock from the same industry, has gained 30.3%. The company reported its results for the quarter ended June 2022 more than a month ago.

First Solar reported revenues of $620.96 million in the last reported quarter, representing a year-over-year change of -1.3%. EPS of $0.52 for the same period compares with $0.77 a year ago.

First Solar is expected to post a loss of $0.15 per share for the current quarter, representing a year-over-year change of -135.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -33.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for First Solar. Also, the stock has a VGM Score of F.

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