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SunEdison (SUNE)

  • 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
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  • Aug. 7, 2014, 9:21 AM
  • Aug. 7, 2014, 7:06 AM
    • SunEdison (NYSE:SUNE): Q2 EPS of $0.12
    • Revenue of $557.5M (+13.4% Y/Y) misses by $14.3M.
    • Press Release
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  • 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%.
  • Jul. 18, 2014, 11:25 AM
    • TerraForm (NASDAQ:TERP) opened at $33.26 and is currently at $33.45, up 33.8% from a $25 IPO price.
    • The SunEdison (SUNE +0.3%) solar project YieldCo is worth $3.17B. Its strong debut could pave the way for similar YieldCo offerings from other solar firms. '
    • Deutsche predicted last month its expects ""the emergence of 5-6 publicly traded YieldCos over the next 12-18 months to act as a robust growth enabler" for the solar industry.
    • Prospectus, IPO analysis
    • Prior TerraForm coverage
    | Comment!
  • Jul. 18, 2014, 10:25 AM
    • Early indications suggest TerraForm Power (NASDAQ:TERP) will open over 30% above its elevated $25 IPO price.
    • Parent SunEdison (NYSE:SUNE) is rallying in response.
    | Comment!
  • Jul. 17, 2014, 7:39 PM
    • TerraForm's (Pending:TERP) IPO price is at the high end of an elevated $23-$25 range, and spells a $2.37B valuation. Shares begin trading tomorrow.
    • The SunEdison (NYSE:SUNE) solar project spinoff will reap net IPO proceeds of $371.2M, and gross proceeds of $65M from private placements. The funds will be used to pay down debt, and potentially to buy solar project assets.
    • Prospectus, IPO analysis
    • Prior TerraForm coverage
  • Jul. 17, 2014, 12:34 PM
    • SunEdison's (SUNE +0.9%) TerraForm Power (Pending:TERP) solar project YieldCo has hiked its IPO price range by $4 to $23-$25.
    • IPO Boutique says the offering, which is set to price tonight, and begin trading tomorrow, is "multiple times oversubscribed."
    • At the midpoint of the range, TerraForm would be worth $2.3B, and raising $547M. The company is selling 20.1M shares through the offering, and 2.7M through private placements.
    • SunEdison is set to own 67.2M shares post-IPO, and maintain 95.2% voting power.
    • Prospectus, IPO analysis
    • Prior TerraForm coverage
    | 1 Comment
  • Jul. 2, 2014, 9:49 AM
    • Canaccord has launched coverage on SolarCity (SCTY +4.4%),  SunEdison (SUNE +1.2%), Canadian Solar (CSIQ +2.3%), and RGS Energy (RGSE +4.7%) with Buy ratings.
    • SunPower (SPWR +0.6%) is up slightly in spite of being started at Hold.
    • Canaccord's Josh Baribeau predicts the solar industry as a whole will benefit as "financial innovation such as risk pooling, securitization, de-levering etc. continue to drive the costs of capital and system costs downward."
    • Baribeau expects SolarCity ($94 PT, leading the securitization trend) to beat Street deployment estimates, and to see strong cash flow growth with the help of declining component and financing costs.
    • He likes Canadian's low manufacturing costs, industry-leading commercial backlog, and relatively low Chinese sales dependence. His target is $43, or 10x 2015E EPS.
    • Solar ETFs: KWT, TAN
    • Previous: Deutsche upbeat on solar YieldCo potential
  • Jun. 19, 2014, 6:23 PM
    • SunEdison (SUNE) is buying 50MW of solar projects from solar development firm BlueWave Capital for an undisclosed sum.
    • The assets include 12 Massachusetts projects that were jointly developed by SunEdison and BlueWave. SunEdison and its financing partners will sell net metering credits to MA cities, colleges, and housing authorities. The projects will be managed by SunEdison's Renewable Operations Center.
    • On Tuesday, SunEdison announced a deal to buy half of major project developer Silver Ridge Power from AES.
    | 1 Comment
  • Jun. 17, 2014, 5:19 PM
    • SunEdison (SUNE) is buying AES' 50% stake in Silver Ridge Power (SRP) for an undisclosed sum. The deal gives SunEdison 50% ownership of 336MW of operating solar projects, and 40% ownership of a 183MW CA solar project to be finished in 2016. (PR)
    • The remaining 50% stake in SRP will continue to be owned by Riverstone Holdings. But Riverstone and SunEdison expect SRP to contribute a 266MW operating CA solar project in its possession to SunEdison's TerraForm Power (TERP) YieldCo unit.
    • SunEdison also expects to buy Riverstone's share of SRP's interest in the 183MW project, and to contribute a 40% interest in the project to TerraForm in 2016.
    • Earlier: Solar stocks jump following SolarCity, Yingli news
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  • Jun. 17, 2014, 12:55 PM
    • SolarCity has announced plans to build a 1GW+ module plant in NY, and to follow it up with one or more much larger facilities. Notably, the company declares (in spite of a current capacity glut) it needs to build the plants to meet long-term solar demand.
    • Yingli missed Q1 estimates, but reported a healthy gross margin (thanks in part to strong Japanese sales) and reiterated full-year guidance.
    • Also: Goldman is out with a bullish note, predicting rooftop solar installations will post a 40% CAGR through 2016.
    • Gainers: FSLR +2.8%. SPWR +4.2%. SUNE +4.4%. JASO +8.2%. SOL +7.5%. JKS +6.5%. CSIQ +7.4%. DQ +4.2%. ASTI +3.9%. HSOL +6.9%. TSL +5.6%. ENPH +3.5%. CSUN +3.7%. RGSE +11.3% (announced a new Hawaiian deal).
    • SolarCity's plans are a positive for equipment vendors GT Advanced (GTAT +1.5%) and Veeco (VECO +1.6%), each of which has seen its solar orders plummet thanks to the capacity glut.
    • Solar ETFs: KWT, TAN
    • Yesterday: Solar stocks rally; Deutsche upbeat on YieldCo potential
  • Jun. 16, 2014, 1:15 PM
    • Deutsche, Macquarie, and Wells Fargo have launched coverage of SunEdison Semi (SEMI -2.9%) with bullish ratings, and Citi and Goldman have launched with neutral ratings.
    • Deutsche's Vishal Shah, who today upgraded parent SunEdison (SUNE +10.2%) to Buy, sees SEMI's cost advantage leading to chip wafer share gains, and notes the company is a leader in the high-ASP specialty wafer space. He also thinks a new wafer supply deal with top customer Samsung could boost SEMI's share.
    • Shares still +29% from last month's $13 IPO price.
    | Comment!
  • Jun. 16, 2014, 11:05 AM
    • "We are becoming increasingly constructive on the solar sector as we expect further tightening of the solar supply/demand balance and expect increased investor interest driving valuation multiple expansion," says Deutsche, which last month struck a far more cautious tone on the industry.
    • The firm adds it expects "the emergence of 5-6 publicly traded [solar project] YieldCos over the next 12-18 months to act as a robust growth enabler." It has upgraded SunEdison (SUNE +6.4%), which recently filed an S-1 for its TerraForm Power (TERP) YieldCo, to Buy.
    • YieldCo momentum is seen growing ahead of potential 2016 U.S. solar tax credit changes, and greater international activity is expected to start in 2015, as grid parity is reached in more markets.
    • Notable gainers: FSLR +3%. SPWR +4.7%. CSUN +5.2%. SOL +4.8%. RGSE +3.4%. HSOL +3.4%. YGE +3.3%. CSIQ +3.1%.
    • SunPower might also be getting a lift from news of a $200M, 2-year loan program with Admirals Bank to finance U.S. residential solar projects. SunPower has already reached residential financing deals with Google and BofA/Merrill this year.
    • Solar ETFs: KWT, TAN
  • Jun. 5, 2014, 11:56 AM
    • SunEdison (SUNE -1.3%) is offering $500M worth of convertible senior notes due 2020. The notes carry an interest rate of 0.25%, and sport an initial conversion price of $26.87/share - a 32% premium to current levels.
    • Shares initially sold off yesterday after SunEdison announced the offering (without giving pricing), but finished the day higher.
    • The company had $3.05B in solar energy systems debt at the end of Q1, and $891M in other debt. Cash/equivalents totaled $463.4M, and another $178.2M in cash was committed to construction projects.
    | 1 Comment
  • Jun. 4, 2014, 9:30 AM
    • The Department of Commerce has imposed new preliminary tariffs on Chinese solar module imports, covering both modules featuring Chinese and non-Chinese cells. Trina (NYSE:TSL) is seeing an 18.56% tariff, bankrupt Suntech (NYSE:STP) a 35.21% tariff, and most other firms a 26.89% tariff.
    • The move follows a complaint from Germany's SolarWorld that Chinese firms are using a loophole involving imported cells to sidestep the DOCs 2012 tariffs. A separate anti-dumping decision is due on July 25.
    • Morgan Stanley notes many were expecting either a lower tariff (perhaps around 15%) or a settlement similar to the EU/China deal. Not surprisingly, the Chinese government says it's "strongly dissatisfied" with the DOC's action, and warns it could hurt trade ties.
    • Chinese solar exporters are off: TSL -6.2%. YGE -5.8%. CSIQ -5.1%. JKS -8.8%. JASO -4.4%. CSUN -3.3%.
    • U.S. peers First Solar (FSLR +2.5%) and SunPower (SPWR +5.5%) are higher. But SolarCity (SCTY -2.8%) and SunEdison (SUNE -3.5%) are off, as investors fear higher panel costs for solar projects. Also: SunEdison has announced a new $500M convertible debt offering. $350M-$400M of the proceeds will go to its TerraForm Power (Pending:TERP) spinoff.
    • Solar ETFs: KWT, TAN
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Company Description
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.