Spruce Power (NYSE:SPRU) Posts Quarterly Earnings Results

Spruce Power (NYSE:SPRU) announced its quarterly earnings results on Wednesday. The company reported $0.14 EPS for the quarter, Zacks reports. Spruce Power had a negative net margin of 12.22% and a negative return on equity of 10.95%.

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

• Profitability improved: Operating EBITDA rose to $26.5 million from $24.6 million, operating income increased 10% to $9.8 million, and the company returned to positive net income of $3.3 million, or $0.14 per share.
• Cost reductions are taking hold: Core operating expenses declined 21% year over year to $13.8 million, driven mainly by a 26% reduction in SG&A. Management expects recurring SG&A to decline toward approximately $10 million per quarter by the fourth quarter.
• Revenue declined and refinancing remains a major risk: Revenue fell to $30.3 million from $33.3 million, pressured by lower SREC and performance-based incentive revenue and a slower Spruce PRO ramp. The SP1 and SP2 facilities require refinancing, and the company issued a going-concern disclosure because no committed refinancing arrangements were in place at quarter-end.
• Liquidity and outlook: Spruce ended the quarter with $81.5 million of cash and restricted cash, including $44.7 million unrestricted, and repaid $7.9 million of debt principal. The company maintained its full-year forecast, expecting stable recurring portfolio cash flows while higher second-half service activity offsets first-half O&M savings.

Spruce Power Trading Up 4.3%

Shares of NYSE SPRU traded up $0.09 during trading hours on Wednesday, reaching $2.18. The stock had a trading volume of 120,020 shares, compared to its average volume of 53,964. Spruce Power has a 52-week low of $1.32 and a 52-week high of $6.75. The firm has a market cap of $39.61 million, a price-to-earnings ratio of -2.87 and a beta of 1.19. The business’s fifty day moving average price is $2.49 and its two-hundred day moving average price is $3.49. The company has a current ratio of 0.48, a quick ratio of 0.48 and a debt-to-equity ratio of 3.86.

Insider Buying and Selling at Spruce Power

In other news, insider Jonathan Mcwhinnie Norling sold 15,000 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $2.84, for a total transaction of $42,600.00. Following the transaction, the insider owned 403,252 shares in the company, valued at approximately $1,145,235.68. This trade represents a 3.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 11.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Steel Partners Holdings L.P. bought a new position in shares of Spruce Power during the 4th quarter worth approximately $16,275,000. Marshall Wace LLP acquired a new stake in shares of Spruce Power in the 4th quarter worth $450,000. Two Sigma Investments LP acquired a new stake in shares of Spruce Power in the 3rd quarter worth $119,000. State Street Corp grew its stake in Spruce Power by 103.1% during the 4th quarter. State Street Corp now owns 89,439 shares of the company’s stock worth $455,000 after buying an additional 45,400 shares during the last quarter. Finally, Dimensional Fund Advisors LP acquired a new position in Spruce Power during the 4th quarter valued at about $218,000. Hedge funds and other institutional investors own 20.76% of the company’s stock.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered Spruce Power from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Tuesday, August 4th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Sell”.

Spruce Power Company Profile

Spruce Power is a renewable energy company that specializes in the ownership, operation and management of distributed solar energy assets. The company partners with solar developers to acquire residential and small-commercial solar portfolios, providing long-term performance monitoring, maintenance and customer support for system owners. By focusing on turnkey asset management, Spruce Power enables homeowners and businesses to benefit from solar power without the upfront risks and responsibilities of system ownership.

Headquartered in San Francisco, California, Spruce Power was founded in 2009 and has grown through strategic acquisitions and partnerships.