Solar provider SunPower topped first-quarter sales projections Wednesday, but SPWR stock toppled on steeper-than-expected losses.
During the March quarter, SunPower lost 7 cents per share, minus some items. Analysts called for a smaller 1-cent per-share loss, according to FactSet. That loss swung from a year-earlier gain of 2 cents. It also represented a sequential decline from adjusted earnings of 15 cents in the fourth quarter.
But Chief Executive Peter Faricy says the company has an unprecedented backlog as it secures new customers under new energy regulations in California.
"This progress, despite challenging weather in California, validates the strength of the residential solar market and SunPower's ability to capture growing demand," he said in a written statement. "As retail electricity rates continue to rise and consumers urgently seek a more affordable and reliable source of energy, the solar value proposition remains strong."
On the stock market today, SPWR stock dropped 4.2% to close at 12.01.
SPWR Stock: Sales Easily Beat
Sales shined in the first quarter, growing 26% to $440.9 million. That easily beat analyst forecasts for $419 million.
The company noted it added 21,000 new customers in the quarter, up 27% year over year. It entered the second quarter with a backlog of 23,000 retrofit customers. Retrofitting is revamping existing solar capabilities to keep up with new regulations, according to Forbes.
SunPower also reiterated its outlook for $2,450-$2,900 per customer in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA. That came despite a $1 million EBITDA miss in the first quarter, Credit Suisse analyst Maheep Mandloi said in a note to clients.
He expects SunPower's earnings to be weighted toward the second half of 2023.
SPWR stock has mostly trended down since early December and are now below both their 50-day and 200-day moving averages, MarketSmith.com shows.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
