Normally, an earnings report that can’t produce a beat doesn’t go over well with investors. For solar stock SunPower (NASDAQ:SPWR), that wasn’t the case. Though SunPower produced misses all around, it still managed to turn up modestly in Thursday afternoon’s trading.
Don't Miss out on Research Tools:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
It should have been a bloodbath, but somehow, it wasn’t. SunPower posted a loss of $0.51 per share in its fourth quarter. That faltered against analyst estimates, which called for a loss of $0.28 per share. Revenue didn’t fare any better, as it came in at $356.9 million. That faltered against analyst projections, which looked for $367.13 million, and fell 28.2% against the fourth quarter of 2022.
SunPower managed to add 16,000 new customers in the fourth quarter and 75,900 customers for the entire fiscal year.
SunPower Boosts Its Liquidity
SunPower also offered up one more big surprise for investors that proved sufficiently welcome to barrel past the losses. It brought in an extra $175 million in new capital and an extra $25 million in revolving debt. That’s a whole lot of extra liquidity available to help SunPower weather the current economic slowdown. The people behind that liquidity expansion are clearly putting a bet on SunPower’s future, inspiring investors to do likewise, even with an earnings report that didn’t turn out that well.
Is SunPower Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on SPWR stock based on eight Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 73.48% loss in its share price over the past year, the average SPWR price target of $3.81 per share implies 10.77% downside risk.
