Sunpower Delivers Another Ho Hum Quarter
EnerTuition • 16 Comments
EnerTuition • 16 Comments
SunPower Analyst Day Disappoints
Tue, Sep. 20, 4:57 PM
- 8point3 Energy Partners (NASDAQ:CAFD) agrees to acquire SunPower's (NASDAQ:SPWR) 49% stake in its 102 MW Henrietta Solar Project for $134M.
- CAFD expects the acquisition to generate ~$10.9M in annual cash distributions and has a 20-year contract life.
- The Henrietta project, located in California's San Luis Valley, will begin operations next month, and is majority owned by Southern Co. (NYSE:SO)
- CAFD +1.9% AH, SPWR +0.5%.
Tue, Sep. 20, 8:43 AM
- SunPower (NASDAQ:SPWR) agrees to acquire AU Optronics' portion of the two companies' joint venture which manufactures solar cells at an 800 MW fabrication facility in Malaysia.
- SPWR will pay $170M over four years under a stock purchase agreement, and will supply 100 MW of its E-series solar panels to AUO.
- AUO will remain a wafer supplier, SPWR says, adding that the transaction resolves a dispute between the two companies.
Wed, Sep. 14, 3:00 PM
Wed, Sep. 14, 12:47 PM
Thu, Sep. 8, 12:58 PM
- The tough environment for solar stocks (TAN +0.7%) will continue for another 18 months, but falling solar stocks may have created buying opportunities among some of the top names in the space, according to analysts at JMP Securities.
- Until the overall solar market improves, JMP prefers stocks that are gaining market share and have favorable competitive positioning, adding that further consolidation in the sector is likely.
- JMP rates Vivint Solar (VSLR +4.4%), Sunrun (RUN +1.4%) and Solaredge Technologies (SEDG +0.2%) at Market Outperform, Canadian Solar (CSIQ +1.5%) at Market Perform, and First Solar (FSLR -0.5%) and SunPower (SPWR -1.3%) at Underperform.
Fri, Aug. 12, 12:35 PM
- SunPower (SPWR -1.5%) is downgraded to Equal Weight from Overweight with a $12 price target at Morgan Stanley, which says the company is less isolated from industry challenges that it had expected.
- The firm says industry headwinds have led to lower than expected visibility into the execution of SPWR’s utility-scale project pipeline, causing it to lower EBITDA estimates through 2020 by $150M-$250M/year to reflect lower system volumes, pricing and margins.
- SPWR shares have dropped ~30% since announcing significant cuts to its 2016 and 2017 guidance, citing severe weakness in its power plant business.
Wed, Aug. 10, 3:25 PM
- Analysts are taken aback by SunPower's (SPWR -29.6%) "guidance bomb" which calls for 2016 gross margins of 9.5%-11.5% instead of 13%-15% amid slowing demand for utility-scale solar projects and more competition in the panel market.
- The surprise is weighing on other stocks in the group: FSLR -7.5%, CSIQ -8.7%, SEDG -9.8%, VSLR -3.1%, JASO -4.5%, SolarCity SCTY -0.9%, SUNE -1.9%, Trina Solar TSL +0.1%.
- At least six firms slammed the stock with downgrades - J.P. Morgan, Oppenheimer, Deutsche Bank, Janney Capital, Credit Suisse and Avondale.
- R.W. Baird, who maintained his Outperform rating but slashed his price target to $21 from $37, said during SPWR's earnings conference call that he felt "blindsided... when you guys have publicly spoken over the past near couple of weeks, we didn’t hear any kind of hint of this at all."
- Credit Suisse’s Patrick Jobin, who cuts his rating to Neutral from Outperform as well as his price target to $12 from $32, says management now faces a credibility problem.
- Not everyone is negative: BofA/Merrill says SPWR's reduced guidance was a disappointment but the stock remains a Buy due to its technology and efficiency advantages, pipeline and backing from global energy giant Total.
Wed, Aug. 10, 3:00 PM
Wed, Aug. 10, 12:47 PM
Wed, Aug. 10, 9:17 AM| Wed, Aug. 10, 9:17 AM | 4 Comments
Tue, Aug. 9, 5:35 PM
Tue, Aug. 9, 5:27 PM
- SunPower (NASDAQ:SPWR) -25.5% AH following a smaller than forecast Q2 loss and better than expected revenues, but the company also lowered its full-year revenue forecast, saying aggressive pricing by new market entrants has hurt near-term economic returns.
- SPWR issues downside guidance for FY 2016, now seeing revenues of $3B-$3.2B, vs. $3.28B analyst consensus estimate and below its earlier outlook for $3.2B-$3.4B, and expecting to deploy 1.45-1.65 GW in 2016, vs. its earlier forecast of 1.6-1.9 GW.
- SPWR says the extension of the Investment Tax Credit, as well as the bonus depreciation credit, while beneficial to the long-term health of the industry, has reduced the urgency to complete new solar projects by the end of 2016, with many customers adopting a longer-term timeline for project completion.
- SPWR also says it will cut ~1,200 employees, or 15% of its workforce, mostly associated with closing a facility in the Philippines, and take $30M-$45M in restructuring charges.
Tue, Aug. 9, 4:07 PM
Mon, Aug. 8, 5:35 PM
- AMBC, APEI, APPS, ARWR, ATHX, AXAS, BW, CALL, CDXS, CHMI, CIVI, CLNE, CRME, CVCO, CYBR, DHT, DIOD, DIS, DPLO, EPIQ, EVRI, FENG, FF, FLTX, FOGO, FOSL, FTEK, GALE, HALO, HCKT, HLIT, HWAY, INFI, INWK, IPAR, JAZZ, KEYW, LITE, LSCC, MCHX, MDVN, MYGN, MYL, NH, NVAX, OMED, OMER, PCTY, PEN, PSIX, PTLA, QNST, RELY, RTK, SCTY, SEDG, SGRY, SPPI, SPWR, TAHO, TCS, TTGT, VRNS, VSAT, WAGE, XON, XONE, YELP, YRD, YUME, ZGNX, ZIOP
Wed, Aug. 3, 2:38 PM
- The solar industry (TAN +1.5%) is facing a "challenging" time ahead, and solar companies likely will be hurt by tighter regulations going forward, Morgan Stanley warns, adding that China, Japan and Europe are the markets most likely to be affected but that the U.S. also faces "tactical regulatory headwinds in the near-term."
- Stanley downgrades Canadian Solar (CSIQ -0.4%) to Underweight from Overweight with a $12.80 price target, slashed from $24, as one of the companies most at risk from coming pricing pressures.
- However, the firm believes sales diversity and focus on systems put SunPower (SPWR +1.9%) in a favorable position ahead of the tough oversupply environment in 2017, and likes JinkoSolar (JKS +1.5%) as the preferred choice among Chinese module manufacturers; both companies are maintained at Overweight but with reduced price targets of $27 for SPWR and $27.20 for JKS.
- Meanwhile, advances that First Solar (FSLR +3%) plans to make to its modules should enable its margins to rise in 2019-20, the firm says, rating shares at Equal Weight with a $59 price target, cut from $63.
Wed, Jul. 6, 3:22 PM
- SunPower (SPWR +3.4%) is higher after announcing a deal to sell a controlling equity interest in the 102 MW Henrietta Solar Project in southern California to Southern Co. (SO +0.2%) for an undisclosed amount.
- SPWR began construction on the project in May 2015 and is expecting to complete work by the end of the year.
- PG&E (PCG +0.6%) will purchase the electricity and associated renewable energy credits generated by the facility under a 20-year power purchase agreement.
- The project will integrate several unique innovations such as robotic cleaners for the solar panels that use 75% less water than traditional cleaning methods and can help improve system performance by up to 15%.
- SPWR also enjoys a boost from a UBS upgrade to Buy from Neutral, which says the stock's recent pullback is overdone.