Thu, May 7, 9:54 AM
- Though SunEdison (NYSE:SUNE) missed Q1 estimates, it delivered 273MW of systems in Q1, up by 123MW Y/Y and topping guidance of 220MW-250MW. The miss was the result of retaining 202MW on the balance sheet, above guidance of 145MW-160MW, and selling just 71MW (below guidance of 75MW-90MW).
- With the help of the First Wind acquisition (closed in January), project pipeline rose 47% Y/Y and 110% Y/Y to 7.52GW, and backlog rose 100% Q/Q and 429% Y/Y to 5.2GW. Projects under construction rose 66% Q/Q and 67% Y/Y to 774MW.
- Guidance: 300MW-340MW of Q2 delivered systems, with 245MW-270MW retained. Q2 cash available for distribution (CAFD) for retained MW of $35M-$40M. 2.1GW-2.3GW of 2015 delivered systems, with 1.84GW-2GW retained. CAFD for retained MW of $275M-$325M.
- Financials: Marketing/admin spend +119% Y/Y to $193M, and interest expense +132% to $156M. Op. cash flow was -$308M thanks to project construction. SunEdison ended Q1 with $789M in cash, $130M in cash committed for construction projects, and $7.75B in long-term debt.
- The TerraForm Power (TERP +2.5%) YieldCo is hiking its 2015 CAFD guidance by $11M to $225M, and its 2015 dividend guidance by $0.05 to $1.35/share. SunEdison dropped down 167MW of systems to TerraForm in Q1.
- With SunEdison only maintaining a 25.6% stake in chip materials provider SunEdison Semi (SEMI +0.6%) as of March 31, the business is now listed as a discontinued unit.
- SunEdison's Q1 results, PR
Thu, May 7, 7:31 AM
Wed, Feb. 18, 4:27 PM
- SunEdison (NYSE:SUNE) recognized revenue on 61MW of solar systems in Q4, below guidance of 84MW-124MW. 295MW were retained on the balance sheet, in-line with guidance of 251MW-361MW. 467MW of systems were under construction at quarter's end.
- Backlog rose 42% Q/Q and 147% Y/Y to 2.6GW, and the project pipeline grew 13% Q/Q and 51% Y/Y to 5.1GW. Pipeline additions rose to 973MW for 561MW in Q3. The figures don't account for the First Wind deal, which closed in January.
- The TerraForm Power YieldCo had revenue of $42.6M (up from just $4.5M a year ago) and an op. loss of $23.8M. SunEdison Semi had revenue of $205.9M (-2.7% Y/Y) and an op. loss of $3.7M.
- Gross margin (swings wildly based on revenue recognition timings) was 13.3% Marketing/admin spend rose 60% Y/Y to $194.4M; R&D spend fell 4% to $16.3M.
- SunEdison Q4 with $944M in cash, $271M in restricted cash, $131M in cash committed for projects, and $7.2B in debt.
- Q1 and full-year guidance will be given at SunEdison's Feb. 24 capital markets day. Shares have fallen to $21.30 AH.
- Q4 results, PR
Wed, Feb. 18, 4:08 PM
Tue, Feb. 17, 5:35 PM
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Nov. 18, 2014, 11:36 AM
- Under pressure for much of last week, solar stocks are rallying (TAN +4.3%) after SunEdison (SUNE +23.5%) and its TerraForm Power (TERP +29.1%) YieldCo announced they're buying leading wind project developer First Wind for up to $2.4B, and JA Solar (JASO +4%) beat Q3 estimates and upped its full-year cell/module shipment guidance to 3.1GW-3.2GW from 2.9GW-3.1GW.
- Gainers: SCTY +3.9%. SOL +4.5%. TSL +3.7%. YGE +2.7%. JKS +3.4%. HSOL +2.8%. ASTI +6%. DQ +3.2%. RGSE +2.6%.
- SunEdison CEO Ahmad Chatila declares the First Wind deal will double his company's addressable market. Cowen thinks SunEdison "can leverage First Wind’s platform to push into international markets for wind given the potential expiration of the production tax credit for U.S. wind projects."
- Along with its results/guidance, JA announced a $90M buyback; it's good for repurchasing 23% of shares at current levels, if fully used. JA's Q3 gross margin was 15%, -20 bps Q/Q but +370 bps Y/Y. Cell/module shipments rose 15.2% Q/Q and 57% Y/Y to 500.2MW.
Nov. 5, 2014, 5:14 PM
- SunEdison (NYSE:SUNE) still expects to complete 1GW-1.15GW of systems in 2014, and to obtain pricing of $2.50-$3.00/watt. But retained systems guidance has been hiked to 740MW-850MW from 710MW-830MW, and revenue recognition guidance lowered to 260MW-300MW from 290MW-320MW.
- Revenue was recognized on 72.5MW of solar systems in Q3, in-line with guidance of 70MW-80MW. Revenue was retained for 251MW of systems, above guidance of 200MW-230MW.
- The company expects to recognize revenue on 84MW-124MW of systems in Q4, and to retain 251MW-361MW.
- Between them, SunEdison's internal solar ops and its TerraForm Power YieldCo had Q3 revenue of $349.7M, -27% Y/Y. SunEdison Semi's revenue fell 8% Y/Y to $213.2M.
- Gross margin rose to 15.2% from 4.6% in Q2 and 9.5% a year ago. Due to a heady solar construction pace, free cash flow was -$596.7M.
- The solar project pipeline rose by 264MW Q/Q to 4.5GW. 610MW was under construction at the end of Q3, up from 475MW at the end of Q2 and 558MW a year earlier.
- SUNE -1.5% AH. Q3 results, PR
Nov. 5, 2014, 4:59 PM
Aug. 7, 2014, 10:05 AM
- SunEdison (NYSE:SUNE) recognized revenue from 54MW of solar systems in Q2, below guidance of 60MW-80MW. But it also retained 164MW on its balance sheet, better than guidance of 100MW-120MW.
- The company now expects to finish 1GW-1.15GW of solar systems in 2014, at the high end of prior guidance of 900MW-1.15GW. Revenue is expected to be recognized from 290MW-310MW (down from 460MW-580MW), and 710MW-830MW are expected to be retained (up from 440MW-570MW).
- In addition, SunEdison forecasts average 2014 project pricing of $2.50-$3.00/watt, better than prior guidance of $2.40-$2.75. That's providing a lift to EPS, which beat consensus by $0.40 in Q2.
- Solar project pipeline rose by 700MW Q/Q in Q2 to 4.3GW, and backlog by 100MW to 1.1GW. 475MW of the pipeline is under construction, up from 463MW at the end of Q1 and 200MW a year ago.
- Gross margin was 4.6% vs. 3.8% in Q1 and 5.9% a year ago. An aggressive construction pace led free cash flow to total -$80.2M. SunEdison ended Q2 with $954.7M in cash/equivalents, and $5.39B in debt. ~$3.5B of the debt is directly tied to solar systems financing.
- Peers SunPower (SPWR +4.2%) and SolarCity (SCTY +2.8%) are also rallying. SolarCity reports after the bell.
- Q2 results, PR
Aug. 7, 2014, 7:06 AM
Aug. 1, 2014, 12:26 PM
- Solar stocks are underperforming (TAN -4%) amid a market selloff after SunPower (SPWR -8.5%) posted mixed Q2 results and provided Q3/2014 guidance ranges with midpoints below consensus.
- SunPower also announced it's building a new plant (Fab 5) that could go live in 2017 and eventually produce 700MW+/year of modules, boosting its capacity by over 50%. "Our share has been in single digits for a while and demand for the last 24 months suggests that we can expand share," says CEO Tom Werner.
- The announcement comes 6 weeks after SolarCity (SCTY -3.5%) unveiled plans to build a 1GW+ module plant with newly-acquired Silevo's help, and said it will later build "one or more significantly larger plants at an order of magnitude greater annual production capacity."
- Minimal capacity investments, together with rising U.S./Asian demand, have helped module prices stabilize following gut-wrenching declines in prior years.
- Also: SunPower stated on its CC (transcript) it hasn't decided whether to create a solar project YieldCo similar to SunEdison's (SUNE -4.3%) TerraForm Power (TERP -4.7%), which recently turned in a strong IPO. "It does not look like the company is likely to make a decision anytime soon," says Raymond James.
- Nonetheless, Brean has upgraded SunPower to Buy, citing optimism about strong demand and healthy pricing.
- Other notable decliners: FSLR -3.6%. TSL -8.4%. JKS -6%. CSIQ -5.6%. CSUN -5.7%. YGE -5%. SOL -4.5%. ENPH -5.8%. RGSE -4.5%. HSOL -3.9%. JASO -4.4%.
May 8, 2014, 9:18 AM
- SunEdison (SUNE) recognized revenue on 76MW of solar system sales, below guidance of 85MW-105MW. But it also retained 74MW on its balance sheet, above guidance of 50MW-60MW. The company expects to recognize revenue on 60MW-80MW of systems in Q2, and to retain 100MW-120MW on its balance sheet.
- For the whole of 2014, SunEdison still expects to complete 900MW-1150MW of systems (+90% at the midpoint). But it now expects to recognize revenue on 640MW-580MW (down from 500MW-650MW), and to retain 440MW-570MW on its balance sheet (up from 400MW-500MW).
- In spite of Q1 pricing weakness, 2014 average project pricing is now expected to be in a range of $2.40-$2.75 vs. a prior $2.25-$2.75.
- Solar energy revenue rose 87% Y/Y in Q1 to $371.5M. The chip wafer division (still set for an IPO) remains weak, with sales falling 11% Y/Y to $206.1M. SunEdison's gross margin fell to 3.8% from 4.9% in Q4 and 9.7% a year ago.
- The company's solar project pipeline rose by 173MW Q/Q to 3.6GW. Backlog fell by 73MW to 1GW. 463MW of the pipeline is under construction, down from 503MW at the end of Q4.
- Q1 results, PR
May 8, 2014, 7:52 AM
- SunEdison's (SUNE) net loss widened to $613.6M from $89.4M a year earlier, hurt by a charge on the company's convertible notes following a large rise in its share price.
- Soft prices for solar panels and semiconductors, as well as higher costs associated with a strategy to retain rather than sell solar power plants, also harmed earnings.
- Shares are -1.15%. (PR)
May 8, 2014, 6:20 AM
May 7, 2014, 11:45 AM
- A Q1 beat and full-year guidance hike aren't enough to keep First Solar (FSLR -4.2%) from selling off. Possibly contributing: In spite of the guidance hike, First Solar stated on its CC (transcript) Q2 EPS "will be significantly lower" than a $0.60 consensus due to project timings; that implies 2014 results will be very back-end loaded.
- Also: First Solar disclosed in its earnings slides (.pdf) its expected future systems/3rd-party module revenue is down $400M from the end of 2013 to $7.1B. However, expected module shipments are up by 100MW to 2.8GW, and potential booking opportunities have risen by 1.6GW to 12.2GW.
- Module production totaled 441MW, -1% Q/Q and +19% Y/Y. Conversion efficiency rose 10 bps Q/Q and 60 bps Y/Y to 13.5%, with lead-line efficiency rising 30 bps Q/Q and 120 bps Y/Y to 14.2%. The company is aiming for 18.1%-18.9% lead-line efficiency by 2017.
- Other solar stocks are also off (TAN -2.8%), as investors continue showing a take-no-prisoners attitude towards momentum stocks in general. Canadian Solar (CSIQ +0.3%) has given back the premarket gains it saw following a Q1 guidance hike.
- Notable decliners: SCTY -8.8%. SUNE -7%. TSL -5.5%. CSUN -5.1%. YGE -4.8%. SPWR -4.2%. DQ -5.7%.
Mar. 4, 2014, 1:34 PM
- With the help of positive earnings news from Trina and Yingli, volatile solar stocks are among the standouts (TAN +6%) on a very good day for equities.
- Trina posted mixed Q4 results, but also issued a strong 2014 module shipment forecast. Yingli has pre-announced its Q4 module shipments will be soundly above prior guidance.
- Notable gainers: SPWR +8.6%. JASO +8%. CSUN +6.6%. CSIQ +7.3%. STRI +10.1%. DQ +8.4%. SOL +6%.
- SunEdison (SUNE +10.5%) is taking off with the help of a Morgan Stanley upgrade. Analyst Timothy Radcliff thinks the commercial-scale solar market could grow to 129GW by 2018, with a rush of activity prior to a 2017 federal tax credit cut. He also thinks SunEdison's solar project yieldco spinoff could sport a $1.6B valuation within 12-18 months, and notes such instruments "trade at premium valuations given [their] predictable and growing cash flows."
- JinkoSolar (JKS +14.8%) is more than recouping yesterday's post-earnings losses with the help of positive commentary. Roth (Buy) notes Jinko's 2014 module guidance of 2.3GW-2.5GW beat the firm's 2.1GW estimate, and thinks Jinko is the first Chinese company to see its non-silicon processing costs drop below $0.40/watt.
SUNE vs. ETF Alternatives
SunEdison Inc is adeveloper and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets. The Company is also engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry.
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