The stock sold-off in early trading on Thursday, which was likely due to some initial disappointment that the company didn't raise guidance more. But, I think that management was simply being conservative, which they have a short history of doing which makes it more likely that they will beat the estimates again next quarter.
But that type of thinking slowly crept back into the market, and the shares began to recover later in the day. Then the company held its conference call, and a full-blown upside reversal was in the works.
A look at the chart above shows how the stock reversed higher from its lows, and has carved out a large upside reversal. Additionally, volume has surged on the move.
Management indicated several positive factors, and forcasted continued growth in 2008, and beyond. They highlighted several large projects, and some foreign markets poised for significant growth.
They also commented that gross margins should approach 30% in 2008. I think this is well above where most analysts were modeling, which was more like 25%.
Disclosure: The author is long SPWR.