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

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.

One thought on “Sunpower (SPWRA) Beats By Wide Margin, But Is It Enough?”

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

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