SunPower Earnings: Here’s Why the Stock is Down Now

SunPower (NASDAQ:SPWR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.22%.

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SunPower Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.22 in the quarter versus EPS of $-0.12 in the year-earlier quarter.

Revenue: Rose 16.37% to $575 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SunPower reported adjusted EPS income of $0.22 per share. By that measure, the company beat the mean analyst estimate of $0.06. It beat the average revenue estimate of $507.73 million.

Quoting Management: “SunPower started 2013 with strong quarterly performance. Our results reflect the benefits of our superior solar panel technology combined with strong performance from both our rooftop and ground mount teams,” said Tom Werner, SunPower president and CEO. “Regionally, North America posted excellent results in all end segments. In our power plant business, we started initial construction of the 579-megawatt (NYSE:MW) Antelope Valley Solar Projects (AVSP) for MidAmerican Solar and reached 90 percent completion on the California Valley Solar Ranch (CVSR) project owned by NRG Energy. With installation at CVSR expected to be finished by the end of the second quarter, we are on plan for full project completion by the end of the year. Demand in the residential lease business remained solid and once again exceeded our finance capacity in the first quarter.

Key Stats (on next page)…

Revenue decreased 15.26% from $678.53 million in the previous quarter. EPS increased 22.22% from $0.18 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.01 to a profit $0.03. For the current year, the average estimate has moved up from a profit of $0.2 to a profit of $0.55 over the last ninety days.

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