SunPower Corporation (SPWRA) anticipating a reversal of its fortunes in Italy has reduced its 2011 earnings outlook. The downward revision was precipitated by solar-policy changes in Italy whereby the development of large solar farms were restricted. As a result SunPower will wind up its utility-scale systems business in Italy and focus on the country's commercial and residential solar markets.
SunPower now expects full-year 2011 non-GAAP gross margins to be in the range of 17%–19%, down from the earlier forecast of 20%–22%. The margins for the second quarter of 2011 are expected to be even lower at 15%–17%. GAAP loss for the second quarter is expected in the range of 50 cents–30 cents per share, and non-GAAP results are expected to lie between a loss of 5 cents per share and a profit of 10 cents per share.
Revenues for the second quarter of 2011 are now expected at $550 million–$600 million, an increase from the prior guidance of $500 million–$550 million.
For the full year, SunPower now expects GAAP results between a loss of 10 cents per share and a profit of 50 cents per share. The prior guidance stated a profit in the range of 70 cents–90 cents per share. On a non-GAAP basis, earnings for the full year are now expected at $1.20–$1.70 per share, sharply down from the prior outlook of $2.00–$2.20 per share. Revenue forecast for the year was maintained at $2.80 billion–$2.95 billion.
SunPower is a vertically integrated solar company with presence across the entire solar value chain. The company designs, develops, manufactures, markets and sells high-performance solar electric power technology products, systems and services worldwide for residential, commercial and utility-scale power plant customers.
The company’s semiconductor-based solar cells and solar panels, which convert sunlight into electricity, are manufactured using proprietary processes and technologies.
SunPower currently retains a short-term Zacks #4 Rank, which translates into a Sell rating. This is in line with its peers like JA Solar Holdings Co. Ltd. (JASO) and China Sunergy Co. Ltd. (CSUN). Over the longer run we maintain our Outperform recommendation on the company.
CHINA SUNERGY (CSUN): Free Stock Analysis Report
JA SOLAR HOLDGS (JASO): Free Stock Analysis Report
Be the first to comment