SunPower
stock was sinking Wednesday after the solar power company cut its fiscal 2023 outlook on weakening demand.
In midday trading, shares of SunPower (ticker: SPWR) were down 7.5% to $3.95 and were on pace for their lowest close since April 2020, according to Dow Jones Market Data. The stock is off 78% this year, dragged down by broader industry problems and SunPower’s own financial issues.
The company said Wednesday it now expects to post a fiscal 2023 net loss of between $175 million and $165 million, compared with previous guidance of a loss between $90 million and $70 million.
SunPower also now expects to post negative earnings between $35 million and $25 million—before interest, taxes, depreciation, and amortization. Its previous fiscal 2023 adjusted Ebitda was between $55 million and $75 million.
“We are reducing our 2023 guidance due to lower-than-expected consumer demand as well as delayed revenue recognition from longer cycle times,” Chief Executive Peter Faricy said in the earnings news statement.
Higher interest rates have made financing major home improvement projects, such as solar panels, even more expensive—and consequently has lowered demand.
SunPower also posted a loss of 12 cents a share on revenue of $432 million. Analysts surveyed by FactSet were expecting a loss of 1 cent a share on sales of $453 million.
“We are focused on continuing to reduce costs while prudently managing cash. With this emphasis, we are prioritizing our efforts to build a stronger and more resilient company that can withstand changing market conditions,” Faricy said in the release.
On Oct. 25, SunPower said in a filing with the Securities and Exchange Commission that it would be correcting statements for 2022, and the first two quarters of 2023 after finding errors.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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