SunPower (SPWRA) Smashes Estimates, Up 20% AH

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05:19:37 pm on July 23, 2009

SunPower (SPWRA) has long lagged its solar competitors in stock performance this year and remains submerged below the 50 and 200 day moving averages.  Tomorrow, the tide may turn.  SunPower just smashed analyst earnings estimates after the bell by reporting an an EPS number of .24/share, beating estimates by .10.  Revenues also came in higher than expectations at 298 million.  The stock is responding well after hours, soaring about 20%.

Let’s keep it in perspective though.  It’s still a 60% plunge in earnings over the year ago quarter and a 22% plunge in revenues over the year ago quarter.  This is a “bad news already built in” kind of move.  When analysts have no expectations for a company, any kind of glimmer of hope can propel a stock into the stratosphere.. for a short time anyway. 

More important than the current earnings numbers is the outlook for future quarters.  CEO Tom Werner is optimistic not only about the company but for the industry.

“Overall, we recorded solid second-quarter results in a demand driven market, consistent with our operating plan. In all of our markets, we are encouraged by the improving industry trends we are seeing in both end demand and financing and we are well positioned for further growth in the second half of the year and 2010. Our manufacturing costs are competitive today and we are ahead of plan to achieve our cost reduction goals. Customers continue to choose SunPower due to our superior roof top and power plant experience, industry leading performance of our solar panels and tracking technology, and our ability to drive attractive project returns for our customers.”

For the full year 2009, the company has tightened the revenue range a bit to $1.35 – 1.7 billion from $1.3 – 1.7 billion.  Analysts are looking for $1.32 billion.  On the earnings side, the company expects net income per diluted share of $1.15 – 1.60 and production of about 400 MW


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