Beaten Down Solar Stock SunPower Cuts 2023 Guidance Despite Signs of Recovery

SunPower Corp SPWR reported a third-quarter FY23 revenue decline of 9.3% year-on-year to $432.00 million, missing the consensus of $453.25 million.

The residential solar technology and energy services provider's adjusted EPS loss of $(0.12) missed the consensus loss of $(0.00). 

SPWR added 18,800 customers, entering Q4 with a backlog of 18,400 retrofit customers and 38,000 New Homes customers.

Adjusted gross margin declined to 15.5% from 22.4% a year ago.

Adjusted EBITDA declined to $(0.78) million, down from $25.33 million a year ago.

SunPower held $103.7 million in cash and equivalents and generated $51.08 million in operating cash flow.

"We are reducing our 2023 guidance due to lower-than-expected consumer demand as well as delayed revenue recognition from longer cycle times," said Peter Faricy, SunPower CEO. "

"There are also some early signs of recovery in September and October, and our battery and financial products customer attachment rates are at all-time highs," continued Faricy.

Outlook: SunPower cut its FY23 adjusted EBITDA guidance to $(35) million - $(25) million (prior $55 million – $75 million) and 70,000 - 80,000 (prior 70,000–90,000) incremental customers.

The FY23 consensus for revenue is $1.81 billion, and EPS loss is $(0.15).

The stock has lost 75.1% YTD.

Price action: SPWR shares traded lower by 9.37% at $3.87 on the last check Wednesday.