Solar energy company SunPower Corporation (SPWR) has identified misstatements in its audited financial statements, prompting a restatement of nearly two years of results and a sharp decline in its stock price. The company disclosed that the misstatements primarily relate to the capitalization of certain deferred costs and the incorrect classification of sales commissions as cost of revenue. These revisions are expected to reduce 2022 and 2023 income from continuing operations by $15 million to $25 million. SunPower has not yet completed its review of 2022 results and cannot guarantee that further errors will not be discovered. The disclosure has raised concerns among investors and analysts, with Truist analysts led by Jordan Levy expressing worries about potential covenant violations and the overall credibility of the company’s management. The revised financial statements are expected to be released soon. The news comes after SunPower raised doubts about its ability to continue as a going concern in December, citing a potential breach of a key credit agreement that could lead to the recall of certain loans.
SunPower Announces Accounting Misstatements, Restates Financial Results
