What happened
Shares of solar panel manufacturer Maxeon Solar Technologies (MAXN 5.92%) jumped as much as 32.6% in trading on Thursday after reporting first-quarter 2023 financial results. Shares were up 32% at 3:20 p.m. ET.
So what
Financial results improved quickly for Maxeon, which said that revenue was $318.3 million in the quarter with net income swinging from a $59.2 million loss a year ago to a $20.4 million profit, or $0.46 per share. Analysts were expecting a loss of $0.51 per share.
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For the full year, management expects $1.4 billion to $1.6 billion in revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $95 million to $120 million.
Now what
Most of the improvement in results was driven by better pricing for solar panels, which is something we've seen across the industry. But management did contain operating expenses, and that's a positive sign in a volatile solar market.
A big reduction in raw-materials costs because of long-term contracts put in place years ago is also helping margins.
Management said they're looking to expand production as well, even in the U.S., after recent subsidies were passed. That could increase the company's market share in the U.S.
While the results were positive, guidance indicates that more than half of the EBITDA for the year happened in the first quarter. The means profits will likely decline in the back half of the year, so this blowout may be a one-time event for Maxeon.
