Why SunPower's Stock Tanked 23% Today
Shares of solar installer (NASDAQ: SPWR) fell a whopping 23% in morning trading on Wednesday after the company disclosed it will restate earnings from the start of 2022 through the first half of 2023. Restating earnings is never good news, but the drop in shares seems a bit overdone given what we know so far.
At 11:00 a.m. ET shares are still down 18.8% and it doesn't look like a recovery is imminent.
Management said in a filing with the SEC that the inventory of microinverters held at a third party had been overstated in a "range of approximately $16 million to $20 million, resulting in the associated cost of revenue being understated." In short, instead of being counted as the cost of goods sold, the product was accounted for as inventory, meaning gross margins and profits would have been lower than stated.
Source Fool.com
Sunpower Corp. Stock
Currently there is a rather negative sentiment for Sunpower Corp. with 9 Buy predictions and 14 Sell predictions..
On the other hand, the target price of 5 € is above the current price of 2.66 € for Sunpower Corp., so the potential is actually 88.15%.
