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SunPower (SPWR) Q4 Loss Wider than Expected, Revenues Miss


SunPower Corp. SPWR reported fourth-quarter 2016 loss of 73 cents per share, wider than the Zacks Consensus Estimate of loss of 51 cents. In the year-ago period, the company had posted earnings of $1.62 per share.

Adjustments were related to the sale of projects to 8point3 Energy Partners CAFD – a holding company formed in 2015 – along with First Solar, Inc. FSLR, sale-leaseback transactions, sale of operating lease assets, stock-based compensation, amortization of intangible assets, restructuring expenses, tax effect and other adjustment costs.

On a GAAP basis, the company incurred a loss of $1.99 per share, wider than the year-ago GAAP loss of 93 cents.

For 2016, the company reported adjusted loss of 90 cents, wider than the Zacks Consensus Estimate of loss of 65 cents.

Operational Results

During the quarter, SunPower garnered revenues of $1,024.9 million that missed the Zacks Consensus Estimate of $1,082 million by 5.3%. Reported revenues also declined 24.9% from the year-ago figure of $1,364 million.

For 2016, the company generated total revenue of $2.56 billion, which missed the Zacks Consensus Estimate of $2.69 billion by 4.8%. Nevertheless, revenues increased 62% from $1.58 billion in 2015.

Total operating expenses were up 92.5% to $266.2 million, owing to higher restructuring expenses in the fourth quarter.

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 $425.3 million as of Jan 1, 2017 compared with $954.5 million as of Jan 3, 2016. Long-term debt increased to $451.2 million from $478.9 million at 2015 end.

In the fourth quarter, net cash outflow was $484.8 million from operating activities compared with outflow of $296.9 million in the year-ago period.


On a non-GAAP basis, the company expects revenues in the range of $370–$420 billion for the first quarter of 2017 and $2.1–$2.6 billion for 2017. Gross margin is estimated to be 0–2% for the first quarter.

SunPower expects to deploy 150–180 megawatts (“MW”) in the first quarter and 1.3–1.6 gigawatts (“GW”) in 2017.

An Upcoming Peer Release

Canadian Solar, Inc. CSIQ is expected to release fourth-quarter 2016 results on Mar 9.

Zacks Rank

Currently, SunPower has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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