SunPower Corp. Earnings Cheat Sheet: Double-Digit Revenue Growth

Hampered by higher costs, SunPower Corporation (NASDAQ:SPWRA) booked a net loss in the second quarter. SunPower Corp. is a vertically integrated solar products and services company that designs, manufactures and markets high-performance solar electric power technologies.

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SunPower Earnings Cheat Sheet for the Second Quarter

Results: Loss widened to $147.9 million ($1.51 per diluted share) from $6.2 million (loss of 7 cents per share) in the same quarter a year earlier.

Revenue: Rose 54.1% to $592.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SPWRA reported an adjusted net loss of 19 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 33 cents per share. Analysts were expecting revenue of $583.1 million.

Quoting Management: “In the 2011 second quarter, revenue grew by more than 30% sequentially as demand for our high efficiency systems remained strong,” said Tom Werner, SunPower president and CEO. “However, mix changes related to market conditions in Germany and Italy impacted our margins. We expect improved results in the second half of the year due to strong visibility in our North American utility and power plants (UPP) and commercial businesses, both of which are fully allocated through the end of the year. Also, as a result of reallocating 85 megawatts (NYSE:MW) from our UPP international business to our residential and commercial business, we plan to increase both our dealer count and proportion of SunPower product sold by our dealers. Our 2011 panel cost reduction roadmap remains on track and we are accelerating our cell manufacturing step reduction initiative which will further reduce our capital cost per watt.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 40.6%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 71.5% from the year earlier quarter.

Gross margin shrank 19.6 percentage points to 3.3%. The contraction appeared to be driven by increased costs, which rose 93.3% from the year earlier quarter while revenue rose 54.1%.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of one cent versus a mean estimate of net income of 6 cents per share.

Competitors to Watch: First Solar, Inc. (NASDAQ:FSLR), Suntech Power Hldgs. Co., Ltd. (NYSE:STP), Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE), Evergreen Solar, Inc. (NASDAQ:ESLR), JA Solar Hldgs. Co., Ltd. (NASDAQ:JASO), Trina Solar Limited (NYSE:TSL), Energy Conversion Devices, Inc. (NASDAQ:ENER), Hoku Corporation (NASDAQ:HOKU), Canadian Solar Inc. (NASDAQ:CSIQ), and MEMC Electronic Materials, Inc. (NYSE:WFR).

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(Source: Xignite Financials)