Spruce Power (NYSE:SPRU) Announces 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 Stock Up 4.3%

Shares of NYSE:SPRU traded up $0.09 during mid-day trading on Wednesday, hitting $2.18. 120,020 shares of the company traded hands, compared to its average volume of 53,964. The stock has a market cap of $39.61 million, a P/E ratio of -2.87 and a beta of 1.19. The company has a current ratio of 0.48, a quick ratio of 0.48 and a debt-to-equity ratio of 3.86. Spruce Power has a 12-month low of $1.32 and a 12-month high of $6.75. The stock has a 50-day moving average price of $2.49 and a two-hundred day moving average price of $3.49.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings cut shares of Spruce Power from a “sell (d-)” rating to a “sell (e+)” rating in a report on Tuesday, August 4th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Spruce Power has an average rating of “Sell”.

Insider Buying and Selling

In other Spruce Power 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 directly owned 403,252 shares in the company, valued at approximately $1,145,235.68. This trade represents a 3.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 11.20% of the company’s stock.

Institutional Trading of Spruce Power

Several institutional investors and hedge funds have recently made changes to their positions in SPRU. Goldman Sachs Group Inc. lifted its holdings in Spruce Power by 37.9% during the fourth quarter. Goldman Sachs Group Inc. now owns 18,072 shares of the company’s stock worth $92,000 after acquiring an additional 4,963 shares during the period. Headlands Technologies LLC purchased a new stake in shares of Spruce Power during the 4th quarter valued at $53,000. Virtu Financial LLC bought a new stake in shares of Spruce Power during the 3rd quarter worth $31,000. XTX Topco Ltd bought a new position in Spruce Power during the second quarter valued at about $32,000. Finally, HRT Financial LP bought a new position in Spruce Power during the fourth quarter valued at about $96,000. Hedge funds and other institutional investors own 20.76% of the company’s stock.

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.