SunEdison Earnings: Here’s Why Investors are Not Excited Now

SunEdison (NYSE:SUNE) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 13.77%.

SunEdison Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.19 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Decreased 39.19% to $491.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SunEdison reported adjusted EPS loss of $0.19 per share. By that measure, the company missed the mean analyst estimate of $-0.13. It beat the average revenue estimate of $443.26 million.

Quoting Management: “Business conditions in the second quarter remained challenging, but I am optimistic regarding our prospects for growth through the remainder of this year and into next,” commented Ahmad Chatila, Chief Executive Officer. “Although the semiconductor wafer market continues to be in an extended downturn, our second quarter Solar Materials performance improved. Solar Energy posted sequentially higher non-GAAP sales, pipeline and backlog, and remains well positioned to capture a disproportionate share of the solar market going forward. We remain committed to maintaining a healthy balance sheet, achieving profitability and generating strong returns for our shareholders,” Chatila concluded.

Key Stats (on next page)…

Revenue increased 10.82% from $443.6 million in the previous quarter. EPS decreased to $-0.19 in the quarter versus EPS of $-0.16 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.10 to a profit $0.06. For the current year, the average estimate has moved down from a profit of $0.19 to a profit of $0.16 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet