) reported fourth-quarter loss per share of 48 cents, which
compared unfavorably with the Zacks Consensus Estimate of
earnings of 12 cents. Moreover, the non-GAAP loss per share as
against year-ago quarter earnings of 8 cents per share.
Although non-GAAP revenues (including adjustments related to
Solar Energy business from direct sales and Financing
sale-leasebacks) increased 36.4% year over year to $960.7
million, it fell short of the Zacks Consensus Estimate of $1.09
billion. The year-over-year rise in revenues were aided by higher
solar project sales (up 58% year over year) which offset lower
sales of semiconductor materials (down 10% year over year).
During the quarter, SunEdison completed 333 megawatts (MW) of
Solar Energy project while retaining 127 MW on the balance sheet
worth $257 million.
SunEdison's non-GAAP gross margins were down from 13.1%
reported in the year-ago quarter to 4.9% primarily due to lower
solar project, solar materials and semiconductor materials
The company's operating loss of $123.5 million for the quarter
significantly deteriorated from $52.0 million operating profit
reported in the year-ago quarter. The year-over-year decline was
attributed to higher operating expenses related to one-time
expenses related to a VIE and continuous investments in DG and
SunEdison reported non-GAAP net loss of $128.7 million or 48
cents compared to $19.9 million or 8 cents.
SunEdison exited the fourth quarter with cash, cash
equivalents and restricted cash of $643.6 million compared with
$757.4 million in the previous quarter. Long-term debt (excluding
current portion) stood at $875.8 million. SunEdison used $413.3
million cash in operations.
SunEdison reported dismal fourth-quarter results. Although
revenues increased on a year-over-year basis,
higher-than-expected operating expenses were responsible for the
disappointing bottom-line performance.
We believe SunEdison will benefit from the rise in demand for
solar energy and the semiconductor business IPO that should
further enable it to concentrate on its core competencies.
Moreover, its recent partnerships and cost reduction initiatives
are expected to expand margins.
Nonetheless, the pricing environment remains a concern for the
company. Competition from
First Solar Inc.
) also remain the headwinds. Currently, SunEdison has a Zacks
Rank #5 (Strong Sell). A better-ranked technology stock worth
), which sports a Zacks Rank #1 (Strong Buy).
FIRST SOLAR INC (FSLR): Free Stock Analysis
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SUNPOWER CORP-A (SPWR): Free Stock Analysis
SUNEDISON INC (SUNE): Free Stock Analysis
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