On July 24, Northern California-based SunPower Corp. (NASDAQ: SPWRA) stunned the Street with a red-hot earnings beat. For Q2, SunPower reported earnings of 24 cents per share, beating consensus by 10 cents. Revenues rose 39% year-over-year to $298 million versus the $263 million consensus. The company also issued upside guidance for fiscal year 2009, seeing EPS of $1.15 to $1.60, compared to the consensus of 96 cents.
In a really bullish sign for SunPower going forward, the company also reiterated its 2009 capex guidance of $250 million to $300 million.
I think several favorable trends support SunPower's strong outlook going forward, including:
- A 76% jump in module sales (as opposed to full solar systems) that enabled SunPower to lower inventory by $80 million and cut its inventory days nearly in half, thereby reducing inventory risk.
- Funding for cheaper roof-top installations of solar panels -- SunPower's sweet spot -- should be available and could actually improve in calendar year 2010.
- SunPower's brand and technology has higher exposure to the U.S. solar market than its competitors, a big advantage now that the U.S. market is on the upswing.
I really like SunPower shares and I would definitely be a buyer here.
Next: Solar stock #5
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Reader Comments (Page 1 of 1)
8-16-2009 @ 11:31AM
justsillyme55 said...
I don’t know about you but I love making a statement…In these crazy economic times did ya ever want to send a message to the world about what’s really going on and what is wrong… I made a wish this morning and here is what it is… I am going to send this email to everybody I know cause it would really be funny to see this happen.
By now everyone knows that GM’s stock is worthless. It is trading as MTLQQ.. Liquidation is in process and this stock is linked to the air. I would love to see it make the news and go up to $6.00 a share.. We the little people who believe in American can really make a statement. If one person out of every 1000 who read this buy 1000 shares OH MY GOODNESS we will make the news… Wanna have laugh and make some money....try it and we can all say we did it. The lil people...
Signed a Rebel without a cause.