MAXN - Maxeon Solar sinks as cost inflation seen weighing on Q2 results

Maxeon Solar Technologies ([[MAXN]] -9.4%) plunges despite reporting a smaller than expected Q1 loss, as its forecast for Q2 revenues came in well short of analyst estimates.After Q1 adjusted EBITDA showed a $25.7M loss and revenues of $165M edged expectations, Maxeon sees Q2 revenues of $165M-$185M, below analyst consensus $218.7M, with an adjusted EBITDA loss of $30M-$40M."There is no avoiding the current headwind from input cost inflation," Raymond James analyst Pavel Molchanov tells Bloomberg, seeing it as a problem for the company in Q2.The analyst thinks SunPower's ([[SPWR]] -1.0%) outlook is "even more back-end-weighted than usual," which he sees as a direct read-through for Maxeon.Suggesting investors take advantage of an "epic reversal of fortune" after the stock reversed from a February peak in the mid-50s, Molchanov upgraded Maxeon to Strong Buy earlier this month.

For further details see:

Maxeon Solar sinks as cost inflation seen weighing on Q2 results