SunPower Shares Drop After Missing Q1 EPS By Wide Margin; Bags Loan Commitment From KKR

• SunPower Corp SPWR reported first-quarter FY23 revenue growth of 26% year-on-year to $440.88 million, beating the consensus of $420.74 million.


• SPWR added a record 21,000 customers, up 27% Y/Y.


• Non-GAAP gross margin declined by 460 basis points to 17.1% as costs jumped 35.5%.


• Adjusted EPS loss of $(0.07) missed the consensus loss of $(0.01).


• Adjusted EBITDA declined to $0.6 million, down from $11.2 million a year ago.


• SunPower held $126.1 million in cash and equivalents and used $(135.1) million in operating cash flow.


• SunPower secured a $550 million loan purchase commitment from KKR & Co Inc KKR. The deal will help SunPower fund $1 billion of incremental solar loans for SunPower's customers.


• "We exited the first quarter with high customer growth, significant new financing commitments, and unprecedented retrofit backlog driven by our efforts securing customers under NEM 2.0. This progress, despite challenging weather in California, validates the strength of the residential solar market and SunPower's ability to capture growing demand," said SunPower CEO Peter Faricy.


• Outlook: SunPower affirmed 2023 guidance of $125 million-$155 million adjusted EBITDA and residential customers of 90,000-110,000.


• SPWR Price action: Sun Power shares traded lower by 3.67% at $12.08 Wednesday at publication.

Read Next: Can Tesla Solar Help Low Income Housing? New European Test Will Find Out