Why SunPower Shares Are Diving Today

SunPower Corp SPWR shares are trading lower by around 15% after the company reported below-consensus Q2 revenues and a reduced 2023 outlook. 

Q2 Preliminary Results: The company expects Q2 revenues of $464 million, up 11% Y/Y, vs consensus of $483.76 million.

SPWR expects a GAAP net loss of $(30) million and an adjusted EBITDA of approximately $(3) million in the quarter.

The company projects Q2 2023 customer growth of 20,400.

2023 Outlook Lowered: SPWR reduced adjusted EBITDA guidance to $55 million - $75 million (from $125 million - $155 million) and GAAP Net Loss to $(90) million - $(70) million from $(31) million - $(1) million. 

Also, the company cut guidance of residential customers to 70,000 - 90,000 (from 90,000 - 110,000), reflecting expected current and near-future customer demand and cost-saving initiatives.

Moreover, SPWR lowered the outlook for residential adjusted EBITDA/customer to $1,450 - $1,650 (from $2,450 - $2,900).

"Demand in the second quarter has weakened more than expected in the Southeast and Southwest where macroeconomic uncertainty and higher interest rates have slowed our top-of-funnel lead generation and sales bookings. To quickly adapt to prevailing market conditions and help ensure SunPower maintains its competitive edge, we are reducing our cost structure. Although we've seen improvements in sales growth in June and July, we've made the decision to reduce our labor costs and are taking additional measures to improve operational efficiency across the board. We believe that these actions will position the company for success as market conditions improve," said Peter Faricy, CEO.

SunPower will report Q2 2023 results on August 1, 2023. 

Price Action: SPWR shares are down 14.88% at $9.55 on the last check Wednesday.