SunPower reported fourth-quarter results Wednesday that topped revenue estimates but missed on earnings. SPWR stock dipped on the news.
The company reported an adjusted loss of 7 cents a share on revenue of $385 million. Analysts expected SunPower to report earnings of four cents a share on revenue of $374.7 million.
The company also filed a preliminary SunPower earnings report for its fourth-quarter on Jan. 20. SunPower said it expected revenue to fall within the previously guided range of $361 million to $421 million.
SPWR stock fell 1% to 16.65 during after-hours trading on the stock market today.
SPWR Stock: Defects In Some Connectors
The company sells, installs, and finances solar power products.
When it reported preliminary results, SunPower disclosed that it had identified defects it described as "cracking issues" that developed over time in some factory installed connectors within certain third-party commercial equipment supplied to SunPower.
The company said residential equipment is unaffected.
It plans to replace the connectors in impacted equipment largely during 2022. SunPower planned to take a $27 million related charge in the fourth quarter, followed by another $4 million charge in the first quarter.
"As we pursue financial recovery from the suppliers, we intend to fund the charges with cash on hand," the company said.
Other Solar Companies' Performance
Along with SPWR stock, SolarEdge late Tuesday reported fourth-quarter financial results that missed on earnings but beat on revenue. SolarEdge stock fell on the news.
Enphase Energy reported fourth-quarter results on Feb. 8 that beat estimates. As a result, Enphase stock jumped 12% in reaction.
Trailing SPWR stock results, Sunrun reports quarterly results late Thursday. It's the largest residential solar, storage and energy services company in the U.S.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
