Earnings Preview: SunPower (SPWR) Q1 Earnings Expected to Decline

Core Viewpoint - The market anticipates a year-over-year decline in SunPower's earnings due to lower revenues, with the upcoming earnings report being crucial for assessing the company's stock price movement [1]. Financial Expectations - SunPower is expected to report a quarterly loss of $0.26 per share, reflecting a year-over-year change of -271.4% [2]. - Revenues are projected to be $318.7 million, down 27.7% from the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.83% higher in the last 30 days, indicating a slight reassessment by analysts [2]. - The Most Accurate Estimate for SunPower is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.92%, suggesting a bearish outlook from analysts [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a focus on positive readings for predictive power [3][4]. - SunPower's current Zacks Rank is 3, which complicates the prediction of an earnings beat [5][6]. Historical Performance - In the last reported quarter, SunPower was expected to post a loss of $0.27 per share but actually reported a loss of $0.51, resulting in a surprise of -88.89% [7]. - The company has not beaten consensus EPS estimates in any of the last four quarters [7]. Conclusion - SunPower does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [8].