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SunPower Firms; Adjusted Earnings Beat, Revenue in Line

SunPower firmed after the solar-power company reported first-quarter adjusted earnings that beat estimates and revenue in line with expectations.
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SunPower  (SPWR) - Get SunPower Corporation Report shares firmed Wednesday, after the solar-power company reported first-quarter adjusted earnings that beat estimates and revenue in line with expectations.

For the quarter the GAAP net loss was 28 cents a share, widened from 1 cent a share in the year-earlier quarter. 

The latest adjusted earnings from continuing operations were a nickel a share.

Revenue was $306.4 million, up 5.5% from $290.5 million.

A survey of analysts by FactSet produced consensus estimates of a GAAP loss of 3 cents a share, or adjusted earnings of 2 cents a share, on revenue of $307.3 million.

The stock recently traded at $24.25, up 5.4%. It has dropped 42% over the past six months.

For all of 2021, the company kept its revenue-growth forecast at about 35%. It still expects adjusted earnings before interest, taxes, depreciation and amortization to grow more than 40% for the year.

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SunPower expects GAAP revenue of $295 million to $345 million for the second quarter, compared with the FactSet analyst consensus of $336.3 million.

It projects second-quarter adjusted Ebitda of $16 million to $27 million, compared with the analyst consensus of $20.7 million.

The second-quarter estimates appear “modestly” below analyst forecasts, said Truist analyst Tristan Richardson, according to Bloomberg. He has a hold rating and a $42 target on the stock.

In April, SunPower Chief Executive Tom Werner retired after 18 years. The company appointed former Discovery  (DISCA) - Get Discovery, Inc. Class A Report chief and Amazon  (AMZN) - Get Amazon.com, Inc. Report veteran Peter Faricy to succeed him.

"Peter's joining the company is a great new asset to SunPower,” said Patrick Pouyanne, chief executive of Total  (TOT) - Get Total SA Sponsored ADR Class B Report, the largest shareholder in SunPower.

Faricy's expertise and skills will enable SunPower "to further expand its customer approach and offerings in the U.S. market.”

TheStreet.com Founder Jim Cramer sounded a bullish note for SunPower on March 30, a few days after the retirement was announced.