Spruce Power (NYSE:SPRU) Announces Quarterly Earnings Results

Spruce Power (NYSE:SPRU) posted its earnings results on Wednesday. The company reported $0.14 earnings per share for the quarter, Zacks reports. The company had revenue of $30.35 million during the quarter. 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 Down 7.3%

Shares of Spruce Power stock traded down $0.15 during trading on Thursday, reaching $1.97. The company’s stock had a trading volume of 38,364 shares, compared to its average volume of 53,997. Spruce Power has a 1-year low of $1.32 and a 1-year high of $6.75. The company has a quick ratio of 0.48, a current ratio of 0.48 and a debt-to-equity ratio of 3.86. The company has a market cap of $35.70 million, a price-to-earnings ratio of -2.59 and a beta of 1.19. The company has a 50-day simple moving average of $2.48 and a two-hundred day simple moving average of $3.46.

Wall Street Analysts Forecast Growth

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 analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock presently has a consensus rating of “Sell”.

Insider Buying and Selling

In other Spruce Power news, insider Jonathan Mcwhinnie Norling sold 15,000 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $2.84, for a total transaction of $42,600.00. Following the sale, the insider directly owned 403,252 shares of the company’s stock, valued at approximately $1,145,235.68. This trade represents a 3.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 11.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Spruce Power

A number of institutional investors have recently added to or reduced their stakes in the stock. Virtu Financial LLC purchased a new position in Spruce Power in the 3rd quarter valued at $31,000. XTX Topco Ltd acquired a new stake in shares of Spruce Power in the second quarter valued at about $32,000. Jane Street Group LLC purchased a new position in shares of Spruce Power in the second quarter worth about $42,000. Headlands Technologies LLC acquired a new position in Spruce Power during the fourth quarter worth about $53,000. Finally, Goldman Sachs Group Inc. boosted its position 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 last quarter. Institutional investors and hedge funds own 20.76% of the company’s stock.

About Spruce Power

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.