SunPower Corporation Gears Up for Earnings Amid Compliance Challenges

• SunPower Corporation is set to release its quarterly earnings with an anticipated EPS of -$0.26 and expected revenue of $324.62 million.
• The company faces compliance issues with Nasdaq's listing rules due to a delay in filing its Quarterly Report on Form 10-Q for the period ending March 31, 2024.
• Despite financial strains indicated by a net loss of $123.9 million and a high cost of revenue of $346.2 million, SunPower's stock trading on Nasdaq remains unaffected for now.

SunPower Corporation (NASDAQ:SPWR), a leading solar technology and energy services provider, is gearing up for its quarterly earnings release on Wednesday, May 22, 2024, before the market opens. Wall Street's anticipation revolves around an earnings per share (EPS) forecast of -$0.26, with expected revenue for the quarter to be around $324.62 million. This comes at a critical time for SunPower as the company navigates through compliance challenges with Nasdaq's listing rules.

Recently, SunPower received a notification from The Nasdaq Stock Market LLC for not complying with Nasdaq Listing Rule 5250(c)(1), which requires the timely filing of all necessary periodic financial reports with the Securities and Exchange Commission (SEC). This notice was issued due to SunPower's delay in filing its Quarterly Report on Form 10-Q for the period ending March 31, 2024. The company had previously indicated this delay in a Notification of Late Filing on Form 12b-25 submitted to the SEC on May 13, 2024.

Despite the compliance hiccup, the trading of SunPower's common stock on the Nasdaq remains unaffected for now. The company has been given until May 20, 2024, to submit a plan to regain compliance with the listing rule. Nasdaq may grant SunPower an extension of up to 180 calendar days to meet the compliance requirements, showcasing the procedural flexibility in addressing such filing delays.

The financial performance of SunPower in the recent quarter paints a challenging picture, with the company reporting a revenue of approximately $356.9 million but facing a net loss of around $123.9 million. The gross profit was reported at about $10.7 million, with the operating income and EBITDA both in the negative, highlighting the financial strains the company is experiencing. The cost of revenue stood high at about $346.2 million, further pressuring the company's financial health.

As SunPower prepares to release its upcoming quarterly earnings, stakeholders are keenly watching how the company's financial performance will align with Wall Street's expectations, especially in light of the recent compliance issues and the broader financial challenges the company faces. The upcoming earnings report will be crucial for SunPower, not just for its financial insights but also for its potential impact on the company's efforts to regain compliance with Nasdaq's listing requirements.