Technology Stocks

Earnings: SunPower Corporation (NASDAQ:SPWR) Action Will be Interesting in the Morning

SunPower Corporation (NASDAQ:SPWR) just announced Q3 (Sep) data, with a loss of $0.29 per share, excluding non-recurring items, $0.14 better than the S&P Capital IQ Consensus of ($0.43); revenues fell 0.8% year/year to $443.4 mln vs the $478.88 mln S&P Capital IQ Consensus. The company also issued downside guidance for Q4, sees Q4 revs of $510-610 mln vs. $653.16 mln S&P Capital IQ Consensus. Shares fell sharply in response. However, a rally tomorrow could suggest seller exhaustion in place.

“In the third quarter we achieved our Adjusted EBITDA target, continued to execute on our strategic initiatives, received our section 201 technology exclusion and positioned the company for sustained profitability,” said Tom Werner, SunPower CEO and chairman of the board. “Demand in our global DG business remained strong with sequential and year-over-year volume growth.  In particular, our U.S. residential business exceeded our forecasts while our commercial business booked a number of large scale, multi-site enterprise deals with customers including Walmart.  We also saw strong bookings in our SunPower Solutions group though our third quarter financial performance was affected by certain international project delays which led to lower-than-expected Performance Series (P-Series) panel shipments and revenue for that group in the quarter.

SunPower Corporation (NASDAQ:SPWR) bills itself as a company that researches, develops, manufactures, and delivers solar solutions worldwide. It operates through three segments: Residential, Commercial, and Power Plant.

The company provides solar power components, including panels and system components, primarily to dealers, system integrators, and distributors. It also offers commercial rooftop and ground-mounted solar power systems, and residential mounting systems, as well as utility-scale photovoltaic power plants. In addition, the company provides post-installation operations and maintenance services.

Further, it leases solar power systems to residential customers; and sells inverters manufactured by third parties.

The company also serves investors, financial institutions, project developers, electric utilities, independent power producers, commercial and governmental entities, production home builders, residential owners, and small commercial building owners.

The company was incorporated in 1985 and is headquartered in San Jose, California. SunPower Corporation is a subsidiary of Total Solar International SAS.


Proof and Pudding, Etc…

As noted above, SPWR just put out its Q3 numbers. The stock has suffered a bit of late, with shares of SPWR taking a hit in recent action, down about -3% over the past week. The open tomorrow may indicate further suffering for longs.

“We also achieved our manufacturing cost reduction targets for the quarter and our Fabs remain 100 percent utilized.  The ramp of our NGT technology remains on plan as we began volume production in Fab 3 this quarter.  Additionally, we were pleased to close our acquisition of SolarWorld Americas assets, which will allow us to increase our manufacturing footprint in the U.S.  Domestic production of our proprietary P-Series technology will allow us to expand our DG product offering in the U.S., maintaining our leadership position in the market,” concluded Werner.

SunPower Corporation (NASDAQ:SPWR) managed to rope in revenues totaling $449.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 33.3%, as compared to year-ago data in comparable terms.

In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($294.2M against $696.2M, respectively).

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