SunPower, a provider of photovoltaic solar energy, has announced that its full-year losses for the year have widened due to a decrease in customer growth and a hit in demand during the second quarter. As a result, the company’s shares fell by 14% to $9.68 in premarket trading.
SunPower now forecasts a net loss for the full year of $70 million to $90 million, a significant increase from its previous estimate of a loss between $1 million and $31 million. Additionally, the company expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year to range from $55 million to $75 million, down from the previous outlook of $125 million to $155 million.
Decrease in Customer Growth
In light of current market conditions, SunPower has revised its customer growth forecast for 2023. The company now predicts adding 70,000 to 90,000 customers, compared to the previous expectation of 90,000 to 110,000 customer gains.
To adapt to the challenging market conditions and improve operational efficiency, SunPower has made the decision to reduce labor costs and implement additional measures across the board. Despite improvements in sales growth in June and July, these actions are deemed necessary by Chief Executive Peter Faricy.