Spruce Power (NYSE:SPRU) Posts Quarterly Earnings Results, Beats Expectations By $0.56 EPS

Spruce Power (NYSE:SPRU) issued its quarterly earnings data on Thursday. The company reported $0.28 EPS for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.56, Zacks reports. Spruce Power had a negative return on equity of 5.94% and a negative net margin of 6.76%. The firm had revenue of $29.69 million during the quarter, compared to analyst estimates of $1.02 million.

Here are the key takeaways from Spruce Power’s conference call:

• Spruce signed a non-binding term sheet covering SP1, SP2, and SP3, which extended SP1’s maturity to January 30, 2027. Refinancing is not yet committed or complete, and the company said it could not repay the facilities at maturity without refinancing or other actions, prompting a going-concern disclosure.
• Third-quarter revenue fell 3% year over year to $29.7 million, with lower electricity production and SREC revenue partly attributed to challenging weather. Management said fourth-quarter revenue is typically affected by seasonal solar production.
• Cost reductions supported results: SG&A declined 23% year over year, while adjusted cash flow from operations rose about 52% in the first nine months. Spruce repaid $38.1 million of debt during that period.
• Net income attributable to stockholders was $6 million, but the improvement was substantially driven by a non-cash interest-rate-swap valuation gain, not equivalent growth in recurring cash generation. Quarterly O&M expense rose 72% as the company worked to address service requests, though nine-month O&M expense was down 13% year over year.

Spruce Power Stock Performance

Shares of NYSE SPRU traded down $0.12 during mid-day trading on Thursday, reaching $1.40. 40,553 shares of the company’s stock were exchanged, compared to its average volume of 91,785. The firm has a 50-day moving average price of $1.58 and a two-hundred day moving average price of $2.87. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 3.20. Spruce Power has a 52 week low of $1.22 and a 52 week high of $6.75.

Wall Street Analyst Weigh In

Separately, Weiss Ratings cut shares of Spruce Power from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, October 29th. One investment analyst has rated the stock with a Sell rating. According to MarketBeat, the stock presently has an average rating of “Sell”.

Spruce Power Company Profile

Spruce Power Holdings Corporation (NYSE: SPRU) is a renewable energy company focused on owning and operating residential solar energy systems. The company provides homeowners with access to solar-generated electricity through long-term customer agreements, while retaining ownership of the systems and managing their ongoing operation. Its activities include acquiring residential solar portfolios, monitoring system performance, coordinating maintenance and repairs, handling customer service and billing, and managing related contractual arrangements.