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Why Is SunPower Stock Shooting Upwards Thursday?

Published 15/02/2024, 18:01
© Reuters. Why Is SunPower Stock Shooting Upwards Thursday?
SPWR
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Benzinga - by Anusuya Lahiri, Benzinga Editor.

SunPower Corp (NASDAQ:SPWR) reported a fourth-quarter FY23 revenue decline of 28.3% year-on-year to $356.91 million, missing the consensus of $362.85 million.

The residential solar technology and energy services provider’s adjusted EPS loss of 51 cents missed the consensus loss of 24 cents. The stock price gained Thursday after the results and funding update.

  • SPWR added 16,000 customers.
  • Adjusted gross margin declined to 4.5% from 23.0% a year ago.
  • Adjusted EBITDA declined to $(67.6) million, down from $30.6 million a year ago.
  • SunPower held $87.4 million in cash and equivalents and used $(40.04) million in operating cash flow.
On Feb. 15, the company announced raising $175 million in new capital financing from TotalEnergies and Global Infrastructure Partners, including $45 million of prior bridge financing, $80 million in new investment, and $50 million available to be borrowed. As a part of the transaction, the company also received $25 million of revolving debt capacity as part of new long-term waivers from key financial partners.

Peter Faricy, SunPower CEO, said, “With this funding and industry tailwinds of extended tax credits and lower equipment costs, we believe SunPower is positioned to execute on maximizing the value proposition of solar and storage for our customers.”

FY24 Outlook:

  • SunPower expects a net loss of $(160) million – $(80) million.
  • It projects an adjusted gross margin of 17% – 19%.
  • The company expects to be free cash flow positive in the second half of 2024.
Price action: SPWR shares were up 1.4% at $4.20 at last check Thursday.

Now Read: Treasury Yields Almost Fully Erase Post-Inflation Data Surge As Poor Retail Sales Reignite Fed Cut Hopes

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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