What happened

While the Nasdaq is inching a tad higher this morning, shares of Maxeon Solar Technologies (MAXN 3.46%) are one of the bright spots in the index. The solar power company reported fourth-quarter 2022 financial results yesterday after the market closed, and investors are showing their excitement today. 

As of 10:55 a.m. ET, shares of Maxeon Solar have risen 39.3%.

So what

Beating analysts' expectations that it would book Q4 2022 revenue of $315.7 million, Maxeon Solar reported $323.5 million on the top line. But what's really exciting investors today is what they found a little lower on the income statement: a gross profit. While Maxeon Solar forecast a fourth-quarter gross profit of negative $1 million to $9 million in its third-quarter earnings presentation, it blew past its guidance, reporting a gross profit of $20.1 million -- a company record.

And the growth in profitability is expected to continue. Management forecasts the company will produce positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first quarter of 2023 and adjusted EBITDA of $80 million to $100 million for 2023.

Wall Street was also impressed with the company's results, leading several analysts to wax bullish on the stock's prospects:

  • Raymond James raised its price target to $24 from $22, maintaining an outperform rating.
  • Northland hiked its price target to $31 from $24.
  • Roth MKM lifted its price target to $21 from $19.

Now what

With Maxeon Solar reporting a company record for gross profit and providing bullish adjusted EBITDA guidance, it's no wonder shares are soaring today. The stock's rise, however, seems a bit excessive. Those interested in Maxeon Solar may want to wait for a pullback before powering their portfolio with this solar stock.