SunPower (NASDAQ:SPWR) stock tumbled in early Tuesday trading after the company said some financial results between 2022 to 2023 "should no longer be relied upon."
As a result, the company plans to restate, as soon as practicable, the affected prior financial statements.
SPWR stock fell as low as $1.77 per share following the news. However, it has since recovered and is up 3.3% at the time of writing, trading around the $2.21 mark.
The company said the misstatements primarily relate to the capitalization of certain deferred costs that did not qualify for capitalization, the classification of certain sales commissions as cost of revenue rather than sales, general and administrative expenses, and certain other individually immaterial adjustments.
It estimates that the impact of the aforementioned adjustments is a decrease to its income from continuing operations for the impacted period in the range of approximately $15 million to $25 million.
"At this time, the Company has not fully completed its review, and the expected financial impact of the errors described above is preliminary and subject to change. The Company cannot provide assurance that other errors will not be identified," stated SunPower.