SunPower Reports Earnings Results

SunPower(SPWRA) reported mixed results after the bell today missing analyst estimates on the EPS side (reporting .05 vs estimate of .08), but matched the revenuenumber at $347 million.  Compared to the year ago quarter, the resultslook darn good because that was a terrible quarter in which the companyreported a loss for the first time in several years.  Sequentially, itwas well below the .47/share and $548 million they reported in Q4, butthat’s typically their strongest quarter, so it’s tough to compare thisquarter with what they’ve done in the past.  Clearly, traders aren’t too impressed sending the stock down another 4% in after hours trading back below $15.

Highlights of comments made from CEO Tom Werner:

- European business growing rapidly
- highly confident can meet2010 plan and deliver strong growth in 2011
- 72% of Euro exposurehedged

Looking ahead, it looks like SPWRA is issuing Q2 guidance well belowthe Street view with an EPS range of .05 – .12, vs the Street estimateof .25/share.  Its revenue guidance is below the Street too.  Itforecasts $380 – $420 million vs the Street estimate of $437 million. While the company is reaffirming the full year guidance it gave last quarter which is within the analyst estimated range, I thinktraders are selling because of the guidance for next quarter (not tomention the EPS miss).  I still think Sunpower (SPWRA) is becoming acompelling stock down at these levels, but would want to see someimprovement technically first.

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Sunpower (SPWRA) Mixed Results, Q2 Guidance Weak, Reaffirms Full Year