SunPower -4.7% AH on slightly soft guidance

SunPower (NASDAQ:SPWR) expects Q3 revenue of $600M-$650M and EPS of $0.15-$0.35; the midpoints are below a consensus of $636.8M and $0.29. Full-year guidance is for revenue of $2.5B-$2.65B and EPS of $1.10-$1.40; the midpoints are below a consensus of $2.59B and $1.31.

Q2 gross margin was 19.5%, down from Q1's 22% but flat Y/Y. GM is expected to fall to 17%-19% in Q3, but is also expected to be in a 19%-21% range for the whole of 2014.

SunPower expects to recognize revenue in 2014 from 1.225GW-1.3GW of solar product sales. The company's total pipeline is at ~8.4GW - 3GW in the Americas, 2.6GW in Asia-Pac, 2GW in the Middle East/Africa, 800MW in Europe.

The Americas were 72% of Q2 revenue, EMEA 10%, and Asia-Pac 18%. Solar products revenue totaled $237M, systems revenue $338M, and lease revenue $33M. 311MW of solar cells were produced, up from 306MW in Q1 and 296MW a year ago.

Q2 results, PR, datasheet, slides

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Comments (4)
  • cmnsnse
    , contributor
    Comments (878) | Send Message
    Sunpower has a very low presence in the fastest growing, lowest penetrated market segment: residential installs.


    Solarcity has nearly 10x more installs in Q2 at 110+MWS. sunpower will have a very difficult time catching up since they are constrained with utility and commercial level commitments into 2015 because of capacity limitations. By the time they allocated more megawatts to residential, Solarcity will be well on its way to installing 900+MWs where Sunpower will be extremely lucky to install 200mws by that time.


    The market response to the Q2 results reflects this.
    31 Jul 2014, 08:20 PM Reply Like
  • IncomeYield
    , contributor
    Comments (3717) | Send Message
    different animals
    31 Jul 2014, 11:33 PM Reply Like
  • Sharpshin
    , contributor
    Comments (122) | Send Message
    Sunpower still boasts the highest efficiency panels anywhere though. Even factoring in higher upfront costs, there will always be a market for high efficiency panels. Japan, after their terrible tsunami and consequent nuclear disaster, has been making large investments in solar, and Sunpower is benefitting in that market since space is limited in urban areas, and high efficiency is sought after and valued more than upfront savings.
    1 Aug 2014, 12:16 AM Reply Like
  • sunwindgeo
    , contributor
    Comments (856) | Send Message
    Something's up here.
    1 Aug 2014, 08:24 AM Reply Like
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