Spruce Power (NYSE:SPRU) Issues Earnings Results

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

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 Trading Up 1.8%

Spruce Power stock traded up $0.03 during midday trading on Friday, reaching $1.42. The stock had a trading volume of 30,570 shares, compared to its average volume of 73,611. Spruce Power has a twelve month low of $1.22 and a twelve month high of $6.75. The stock has a market capitalization of $27.24 million, a PE ratio of -3.14 and a beta of 1.30. The company has a debt-to-equity ratio of 3.20, a quick ratio of 0.40 and a current ratio of 0.40. The stock’s 50-day simple moving average is $1.57 and its 200 day simple moving average is $2.85.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings lowered shares of Spruce Power from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, October 29th. One analyst has rated the stock with a Sell rating. Based on data from MarketBeat.com, the company presently has a consensus rating of “Sell”.

About Spruce Power

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.