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SunPower Lower as Earnings Forecasts Lag Expectations

SunPower shares fell after the solar-panel seller’s earnings forecast lagged expectations, leading to downbeat comments from analysts.
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SunPower  (SPWR) - Get SunPower Corporation Report shares fell sharply Thursday, after the solar-panel seller’s earnings forecast lagged expectations, leading to downbeat comments from analysts.

SunPower predicts 2021 earnings before interest, taxes, depreciation and amortization of $120 million, compared with the Bloomberg analyst consensus of $123 million. 

The San Jose, Calif., company’s Ebitda estimate for 2022 is $168 million, below the analyst consensus of $186 million.

The stock recently traded at $38.56, down 12%. But it has blasted off by a factor of 7 in the past year amid investors' mania for alternative-energy stocks.

Piper Sandler analysts rate SunPower neutral with a $35 price target. Seasonality affected earnings guidance, and the commercial sector hurt fourth-quarter results, they said, according to Bloomberg. 

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They predicted SunPower shares will underperform the sector going forward, given their recent outperformance.

The Invesco Solar ETF  (TAN) - Get Invesco Solar ETF Report recently traded at $108.36, down 6.3%. While it has trailed SunPower over the past year, it still has nearly tripled for that period.

Cowen rates SunPower market perform and more than doubled its price target to $38 from $17. SunPower was “priced to perfection” ahead of its earnings report, Cowen analysts said. So they expected a decline for the stock in light of its Ebitda guidance.

Roth Capital Partners has a neutral rating for SunPower with a $40 price target. Lower megawatts deployed hurt fourth-quarter revenue, Roth analysts said. They saw confusion regarding the guidance.

“Many were focused on the 2021 adjusted Ebitda margin guide, and were expecting greater than 10%, though management clarified with us that this is just for the [residential] segment,” the analysts wrote, according to Bloomberg.