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The Constant Thorn in SunPower's Side

TheMotleyFool

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When SunPower Corporation (NASDAQ: SPWR) reported fourth-quarter 2019 earnings last week it seemed like the company's performance was as good or better than what investors expected. Revenue rose from $525.4 million a year ago to $607.0 million, and gross margin improved from 6.9% to 20.8%, an impressive turnaround for the business.

But most of the improvement SunPower saw in the quarter was in its manufacturing business, which is being spun off as Maxeon Solar Technologies later this year. The residential and commercial business was far less impressive, with a gross margin of just 13.7%, and there's a big reason for that. Commercial solar continues to be a huge disappointment for SunPower.

Image source: SunPower.

Source Fool.com

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