(Sunpower's next generation Series A modules boasts the first residential solar module to top 400 watts.)
With its third quarter 2019 earnings, SunPower (SPWR) continued to show operational improvements critical for its long term success. Although headline results were not much higher than average analysts' estimates, internal profitability metrics for the company's next generation Series A solar modules were surprisingly high. SunPower's potential earnings power is currently being understated by the initial low volume of Series A sales, but investor perception of the company could change quickly as it increases capacity and ships higher volumes of the product moving forward.
Third Quarter 2019 Earnings
Since SunPower is still losing money on a GAAP basis, its non-GAAP headline EPS beat of $0.05 over Wall Street estimates of $0.02 should not matter much for long term investors. What investors should be focused on is the company's turnaround progress. Unlike the SunPower of old that often overpromised and underdelivered, the company's 2019-2020 restructuring targets appear to be well ahead of schedule.
The following table shows the company's actual reported 2019 results compared to its midpoint guidance.
| Q1 Guidance | Q1 Actual | Q2 Guidance | Q2 Actual | Q3 Guidance | Q3 Actual | |
| Revenue | $310.00 | $348.20 | $390.00 | $436.30 | $450.00 | $476.00 |
| non-GAAP Gross Margin | 4.00% | 6.00% | 8.50% | 10.50% | 15.50% | 15.90% |
| Adjusted EBIDTA | -$30.00 | -$23.80 | $5.00 | $8.00 | $40.00 | $42.00 |
(Data from SunPower's quarterly earnings presentations. All dollar figures in millions of USD.)
For the fourth quarter, SunPower's midpoint guidance call for revenues of $620 million. This is slightly below current analysts' average estimates of $640.2 million because the company gave a very wide revenue range of $520 to $720 million. SunPower has surpassed its high end revenue guidance every time by an average of 4.4% for the first three quarters of 2019 so it is likely current Wall Street
