Spruce Power (NYSE:SPRU) Releases Quarterly Earnings Results

Spruce Power (NYSE:SPRU) issued its quarterly earnings results on Wednesday. The company reported $0.14 earnings per share (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 Performance

SPRU traded up $0.09 during trading hours on Wednesday, hitting $2.18. The stock had a trading volume of 120,020 shares, compared to its average volume of 53,964. Spruce Power has a 1 year low of $1.32 and a 1 year high of $6.75. The company’s fifty day simple moving average is $2.49 and its 200 day simple moving average is $3.49. The stock has a market cap of $39.61 million, a PE ratio of -2.87 and a beta of 1.19. The company has a quick ratio of 0.48, a current ratio of 0.48 and a debt-to-equity ratio of 3.86.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings lowered Spruce Power from a “sell (d-)” rating to a “sell (e+)” rating in a report on Tuesday, August 4th. One research analyst has rated the stock with a Sell rating, Based on 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 company’s stock in a transaction dated Monday, June 15th. The shares were 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 $1,145,235.68. This represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 11.20% of the stock is currently owned by company insiders.

Institutional Trading of Spruce Power

Several hedge funds and other institutional investors have recently modified their holdings of the business. XTX Topco Ltd purchased a new stake in shares of Spruce Power during the 2nd quarter valued at approximately $32,000. Jane Street Group LLC bought a new stake in Spruce Power during the 2nd quarter valued at $42,000. Vanguard Group Inc. raised its holdings in Spruce Power by 3.9% during the 3rd quarter. Vanguard Group Inc. now owns 679,844 shares of the company’s stock valued at $1,666,000 after acquiring an additional 25,663 shares during the period. Two Sigma Investments LP purchased a new stake in shares of Spruce Power during the third quarter worth $119,000. Finally, Virtu Financial LLC purchased a new stake in shares of Spruce Power during the third quarter worth $31,000. Institutional investors 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.