What happened
Shares of residential solar company SunPower (SPWR +0.00%) jumped as much as 15.5% in trading on Tuesday after the company reported second-quarter 2022 financial results. Shares are still up 14.1% at 12:20 p.m. ET and show no signs of stopping.
So what
Management said SunPower added 19,700 customers in the second quarter, up 51% from a year ago, and revenue jumped 63% to $417.8 million. Its non-GAAP (adjusted) gross margin of 21.3% was the sixth time in seven quarters SunPower reported a gross margin of 20% or more.
OTC: SPWR
Key Data Points
Net loss was $42.5 million under generally accepted accounting principles (GAAP), but the company reported a net income of $5.2 million, or $0.03 per share. For the full year, management expects $2,000 to $2,400 in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) per customer, which means $90 million to $110 million in total adjusted EBITDA for the year. That's consistent with the prior outlook, but investors seem relieved that results are hitting expectations.
Now what
Momentum continues to be strong for SunPower and the company continues to add energy storage, under the SunVault brand, to residential solar systems at a rapid rate. In the second quarter, 19% of direct channel bookings included SunVault energy storage.
SunPower needs to continue proving that its business is growing profitably, but the trends look positive. And if electricity prices continue to rise this could be a great renewable energy stock long-term.
