Sunpower (SPWRA) Beats By Wide Margin, But Is It Enough?

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04:54:34 pm on November 11, 2010

Sunpower (SPWRA) has announced earnings results after the bell today that doubled the analyst estimates on the EPS side at .26/share on revenues of $550 million vs the analyst estimate for $471 million.  While that’s a big bump over the average estimate it’s not impressive when compared to the year ago quarter when the company reported .46 EPS.  I just don’t think the quarter is going to be enough for another big leg up in the stock, but we’ll see.  The stock has been consolidating for a couple months now and still looks considerably bullish.

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Here are some highlights from comments made by CEO Tom Werner:

– stable ASP environment in the quarter
– continues to see more demand than supply for 2011 in their utility & power plants and residential and commercial biz
– expanded their commercial and residential global dealer footprint in US, France & Italy
– expects to finance and monetize balance of Italian projects by end of year
– expects to achieve cost of $1.08/watt within about one year

Looking ahead the company expects Q4 revenue in the $870 – $970 range and for the full year 2010 expects revenues in the $2.15 – $2.25 billion range. Analysts expect $935 million and $2.15 billion respectively.  For EPS, the company sees Q4 at .95 – 1.15 and the full year at 1.45 – 1.65 vs the analysts estimates of $1.10 and $1.43.

To sum up, a real strong quarter out of SPWRA and solid guidance, I’m just not sure it’s enough for another surge higher right away.  The big resistance level right now is the $15 level which is the 200 day moving average.  Closing above that level would be very bullish for SPWRA.  Shares are up about 1% in after hours trading.

Disclosure: no position.

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Useful commentary on the earning release including EPS so thank you Tate.

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