Why Sunpower Stock Got Crushed?
Feb 18, 2021 by InvestorDestination Team
Shares of Sunpower Corporation (NYSE: SPWR) dipped 17% today after it announced its fourth-quarter results. The company's fourth-quarter revenue declined 14% YOY, and it generated diluted EPS of $2.08 compared to last year's EPS of $0.29.
For the last several years, the company is working on its turnaround plan, and 2020 was a transitional year for the company.
| Q4 - 2020 | Q4 - 2019 | Full Year 2020 | Full Year 2019 | |
|---|---|---|---|---|
| Revenue (in millions) | 342 | 402 | 1,125 | 1,092 |
| EPS | 2.09 | 0.05 | 2.48 | 0.22 |
| Gross Margin | 22% | 21% | 15% | 15% |
| Operating Margin | 7% | 8% | (1%) | 6% |
The solar industry is expecting favorable alternative energy policies from Biden Administration. In recent months investors are optimistic about the solar future. In the last three months, its stock has gained more than 200%.
The company expects 35% revenue growth in 2021 and expects to triple its EBITDA. However, its first-quarter guidance is dismal. It expects revenue in the range of $270 to $330 million and GAAP net loss of $20 million to $10 million. Investors got a dose of a reality check.
There is no denying that the solar industry is at the infancy stage of multi-decade growth. Sunpower is the leader in the distributed generation solar and storage market. This year's unusual weather pattern in the south of the country and rolling blackouts caused by grid outages emphasize the need for renewable energy and storage. It has strengthened its balance and improving its operations.
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