SunPower Corporation Earnings: Swinging to a Loss After Two Quarters of Profit

SunPower Corporation (NASDAQ:SPWRA) swung to a loss in the first quarter, missing analysts’ forecast. 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 First Quarter

Results: Swung to a loss of $2.1 million (2 cents/diluted share) in the quarter. SunPower Corporation had a net income of $12.6 million or 13 cents per share in the year earlier quarter.

Revenue: Rose 30% to $451.4 million YoY.

Actual vs. Wall St. Expectations: SPWRA reported adjusted net income of 15 cents per share. By this measure, it fell short of the mean analyst estimate of 17 cents/share. Estimates ranged from 13 cents per share to 27 cents per share.

Quoting Management: “We met our margin and bottom line financial goals in the first quarter by adjusting our downstream channels and operating expenses,” said Tom Werner, SunPower president and CEO. “Our revenue was lower than plan as a result of changing market conditions in Europe. Operationally, we exceeded our manufacturing cost reduction targets for the quarter and remain on plan to achieve our efficiency adjusted panel cost per watt target of $1.08 in the fourth quarter of this year. Execution on the Fab three ramp continues to surpass our internal forecasts as yields and equipment efficiency again reached record levels.”

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 42.2%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 71.5% from the year earlier quarter.

SPWRA’s loss in the latest quarter follows profits in the previous two quarters. The company reported a profit of $152.3 million in the fourth quarter of the last fiscal year and a profit of $20.1 million in the third quarter of the last fiscal year.

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).

Stock Performance: Shares of SPWRA are down 0.5% from the previous close.

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