Investing.com -- Shares in SunPower (NASDAQ:SPWR) sank on Wednesday after residential solar panel group reduced its annual financial guidance, citing lower-than-anticipated consumer demand and delayed revenue recognition.
In a preliminary earnings update, the California-based company said it now expects to incur a full-year net loss of between $165 million - $175 million, down from its prior estimate for a loss of $70M - $90M.
Expectations for adjusted earnings before interest, tax, depreciation and amortization were also revised to predict a 2023 loss of $25M - $35M. SunPower had previously forecast positive earnings of $55M - $75M.
Chief Executive Officer Peter Faricy said in a statement that while there has been "industry-wide softness," there have been "positive signs" in September and early October, including the firm's highest-ever month for storage sales and improving demand. However, he noted that the trading environment for the business continues to be "difficult."
SunPower posted an 8% decline in third-quarter adjusted revenue to $432.2M, missing Bloomberg consensus projections of $456.5M, as well as an adjusted loss before interest, taxes, depreciation and amortization of $78M. Analysts had been looking for a profit of $24.4M.