Sunpower (SPWRA, SPWRB) will report earnings on Thursday after the bell and analysts are rushing in to slash estimates ahead of the earning announcement.  According to Barron’s, Friedman Billings Ramsay, Thomas Weisel Partners and Pacific Crest all issued warnings this morning.

– Mehdi Hosseini of FBR reiterated his Market Perform rating but cut his 09 EPS estimate to $2.06 from $3.02 due to slow demand in Italy and the US.

– Jeff Osborne of TWP, reiterates his Market Weight rating but also cuts 09 EPS to $2 from $3.03 due to tight credit markets and the possibility of Spanish demand going to zero this year. 

– Mark Bachman of Pacific Crest cut his rating to Underperform and cut his 09 EPS estimate to $2.27 from $2.93.  He says that data from actual installation points to a significant advantage for thin film solutions in particular First Solar (FSLR) and that Sunpower they once professed it to be. 

Despite the downgrades, Sunpower (SWPRA) is trading up nearly 3% today but remains submerged below support of the 50 day moving average.  If it can’t clear the 50 day moving average after earnings, the odds of testing all time lows around 18.50 become much greater.