What happened
Shares of SunPower Corporation (SPWR +0.00%) jumped as much as 14.4% in trading Friday after the solar manufacturer reported first-quarter 2019 results. Shares gave back some of those gains midday, but at 12:15 p.m. EDT shares were still up 9.5% on the day.
So what
Quarterly revenue was $348.2 million and net loss was $89.7 million, or $0.63 per share on a GAAP (generally accepted accounting principles) basis. On a non-GAAP basis, revenue was $411.6 million and the loss was $57.4 million, or $0.41 per share. Adjusted EBITDA was negative $23.8 million, down from a gain of $32.3 million a year ago.
Image source: SunPower Corporation.
Management also said it continues to expect 1.9 to 2.1 gigawatts of solar deployed with $1.9 to $2.0 billion of non-GAAP revenue for 2019. What investors likely gravitated to was management increasing the lower end of adjusted EBITDA guidance for 2019 from $80 million to $90 million, while keeping the $110 million top end of the range the same.
Now what
There weren't any huge surprises in the quarter, but investors are likely relieved that operating conditions are expected to get better as the year goes on. The solar industry has been very competitive in the last few quarters, and price wars can lead to lower margins across the board. SunPower says it's expecting margins to improve as new high-efficiency solar panels are rolled out and U.S. residential and commercial markets grow. That's why there's optimism today, and now the company needs to execute on rising expectations.
