The provider of photovoltaic solar energy generation systems, SunPower (NASDAQ: SPWR) declined in pre-market trading on Wednesday after the company announced that it plans to restate its financial statements for FY 2022 and for the first and second quarter of FY23.
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The company stated in its press release that it was restating these financial statements as it had determined that the “value of consignment inventory of microinverter components at certain third-party locations had been overstated in the Affected Periods in the range of approximately $16 million to $20
million, resulting in the associated cost of revenue being understated.”
SunPower added that it has yet to complete the review of its financial statements and as a result the financial impact of these errors could be “subject to change.” The company expects to announce its Q3 results on November 1.
Is SPWR Stock a Good Buy?
Analysts remain sidelined about SPWR stock with a Hold consensus rating based on two Buys, 10 Holds and five Sells. The average SPWR price target is $7.29 implying an upside potential of around 47% at current levels.
