MAXN - Maxeon Solar sinks after issuing below-consensus revenue guidance

2023-08-10 16:54:05 ET

Maxeon Solar Technologies ( NASDAQ: MAXN ) -18.1% post-market Thursday after reporting a Q2 GAAP loss and issuing guidance for Q3 and FY 2023 revenues that are well below analyst expectations.

The company also unveiled plans to spend $1.2B to build the biggest U.S. factory for manufacturing polysilicon solar panels.

Maxeon ( MAXN ) said the plant in Albuquerque, New Mexico, will be able to produce as much as 3 GW/year of solar cells and panels, doubling the company's manufacturing capacity; construction is set to start in Q1 2024, with production expected to begin in 2025.

Q1 net loss was $1.5M, compared to a $20.2M net profit in Q1 and an $87.9M net loss in the year-earlier quarter, while revenues rose 46% Y/Y to $348.4M.

Maxeon ( MAXN ) issued downside sales guidance; it sees revenues of $280M-$320M for Q3 and $1.25B-$1.35B for the full year, below analyst consensus of $394.8M for Q3 and $1.51B for the full year.

"The demand environment in the global distributed generation market weakened significantly in late Q2 due to the combined effect of higher interest rates, the impact of policy disruption in California, and significant channel inventory industry-wide," CEO Bill Mulligan said.

More on Maxeon Solar Technologies:

• Financial and valuation comparison to sector peers
• Analysis: Harnessing The Sun's Power: Maxeon's Journey Towards A Brighter Future In Solar Energy
• Stock price return: Up 49.5% YTD, up 14% in the past 12 months

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