SunPower Stock Scorched On Unexpectedly Deep First-Quarter Losses

Solar provider SunPower (SPWR) topped first-quarter sales projections Wednesday, but SPWR stock toppled on steeper-than-expected losses.

SunPower's loss per share was 7 cents during the quarter ending March, less certain items. FactSet reports that analysts expected a loss of 1 cent per share. This loss was a sharp contrast to a 2 cent gain a year earlier. This was also a decline sequentially from the adjusted earnings of $15 cents in fourth quarter.

Peter Faricy, the chief executive of the company, says that it has an unimaginable backlog due to new energy regulations being implemented in California.

In a written announcement, he stated that "this progress, despite challenging California weather, validates SunPower's capability to capture growing demand." Solar value proposition is strong as retail electricity prices continue to increase and consumers seek out a reliable and affordable source of energy.

SPWR shares fell 7.3% in morning trading today on the stock exchange, near 11,60.

SPWR Stock: Sales easily beat

Sales grew 26% in the first quarter to $440.9 millions. This easily surpassed analyst expectations of $419 million.

The company reported that it had added 21,000 customers to its customer base in the first quarter of this year, a 27% increase over last year. The company entered the second quarter of this year with 23,000 retrofit clients on its backlog. According to Forbes, retrofitting involves updating existing solar technologies to meet new regulations.

SunPower reiterated that it expects to earn between $2,450 and $2,900 in adjusted earnings, before interest, tax, depreciation, and amortization (EBITDA), per customer. Maheep Mandloi, an analyst at Credit Suisse, said that despite the $1 million EBITDA missed in the first quarter.

SunPower's earnings will be weighed towards the second half in 2023, according to Mr. He.

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