Maxeon Slips 6% On Weaker-Than-Expected 1Q Revenue Outlook

Shares of Maxeon Solar Technologies fell 5.9% in Tuesday’s extended trading session after the solar panel manufacturer issued a 1Q outlook that was well below analysts’ expectations.

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Maxeon (MAXN) expects to report revenue of approximately $160 million in 1Q against the Street’s forecast of $232.8 million. Moreover, it projects module shipments of about 375 megawatts (MW) during the quarter.

The company noted that the solar industry continues to face upstream supply chain cost challenges. Additionally, it warned that costs for solar cells, glass, freight, and other items may remain elevated in the second half of 2021.

Meanwhile, Maxeon reported better-than-expected top-line results for the fourth-quarter of 2020. Revenues of $245.6 million topped consensus estimates of $242.1 million. However, they plunged 33.3% year-over-year mainly due to an 11.5% decline in module shipment. (See Maxeon stock analysis on TipRanks)

Maxeon CEO Jeff Waters said, “In our first full quarter as an independent public company we delivered financial results consistent with our guidance while making progress on each of the three pillars of our strategy: our differentiated global brand and channel, our panel technology, and our focused approach to the large-scale market.”

On Feb. 11, Raymond James analyst Pavel Molchanov raised the stock’s price target to $60 (110.2% upside potential) from $40 and reiterated a Buy rating.

In a note to investors, Molchanov wrote, “As a company that sells to 100-plus countries, Maxeon has a revenue mix that is one of the most geographically diversified in the solar space. We are especially fans of Maxeon’s above-average exposure to the European market (vis-a-vis theEuropean Climate Law), and the operational foothold in China (which last week launched its national carbon trading program) is also a competitive advantage.”

Turning now to the rest of the Wall Street community, Maxeon has a Moderate Buy consensus rating based on 2 unanimous Buys. The average analyst price target of $51.50 implies upside potential of about 80.4% to current levels. Shares have lost about 24.1% since its listing on the stock exchange on Aug. 26, 2020.