SunPower Corporation (NASDAQ:SPWR) beat earnings expectations, but lowered its guidance, causing shares to slip.
The solar power services provider posted second-quarter earnings of a 35-cent-per-share loss, ahead of the 46-cent loss that analysts polled by Zacks Investment Research expected. Revenue came in at $341.5 million, or $337.4 million on an adjusted basis, topping the consensus estimate of $305 million.
“Our strong execution enabled us to meet our financial goals for the quarter despite the continued challenging industry conditions,” Tom Werner, SunPower chief executive, said in a statement.
For its third quarter, the company expects revenue to be in the range of $320 million to $370 million, well below the Wall Street projection of $678 million. Gross margin is expected to be in the range of 5% to 7%, while adjusted EBITDA is expected to be between breakeven and $20 million for the period.
GAAP restructuring charges are now slated to be in the range of $20 million to $60 million a year. The update was caused by an adjustment of its Mexico projects schedule.
SunPower predicts fiscal-year revenue of $2.1 billion to $2.3 billion, which is lower in the top end as it previously expected revenue in the range of $2.1 billion to $2.6 billion. Earnings for the full year are expected to be in the range of a loss of $120 million to a loss of $100 million.
SPWR shares rose 2.2% during the day, but fell 3.4% after the bell.