Maxeon Solar Technologies Loses 50% Value In One Session After Q1 Earnings - Here's Why

Zinger Key Points
  • Maxeon Solar Technologies Q1 revenue of $187.46 million missed estimates and declined 41.1% Y/Y.
  • EPS loss of $(1.59) missed the estimated loss of $(1.00); shipments declined 37% Y/Y to 488 MW.

Maxeon Solar Technologies MAXN reported fiscal first-quarter revenue of $187.46 million, missing the analyst consensus estimate of $193.91 million. Revenue declined by 41.1% year over year.

The EPS loss of $1.59 missed the analyst consensus loss estimate of $1.00, and the stock plunged more than 50% after the print.

Quarterly shipments declined by 37% year over year to 488 MW. The net loss was $80.15 million, down from an income of $20.27 million year over year.

The adjusted EBITDA loss was $38.98 million, down from an income of $30.98 million Y/Y.

Maxeon’s Chief Executive Officer Bill Mulligan acknowledged a very difficult market environment since the third quarter of 2023, with challenging industry pricing conditions and demand disruptions in its distributed generation (DG) business due to higher interest rates and policy changes, and project pushouts by two of its large-scale customers in the U.S.

The company’s shareholder, TCL Zhonghuan Renewable Energy Technology Co. Ltd. (TZE), has agreed to invest $97.5 million via debt and has committed to an additional $100 million equity investment.

In addition, most of the holders of the $200 million 2025 convertible notes have agreed to exchange their bonds and accrued interest into new bonds due in 2028, which are convertible into equity.

Outlook: Maxeon expects second-quarter revenue of $160 million—$200 million (versus a consensus of $203.80 million), shipments of 520 MW—600 MW and capex of $15 million—$25 million.

The company projected fiscal 2024 revenue of $640 million – $800 million (versus consensus of $891.55 million) and capex of $70 million – $100 million.

Price Action: MAXN shares traded lower by 45% at $1.71 at the last check on Thursday.

Photo via Company

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