) reported first-quarter loss per share of 25 cents, wider than the
Zacks Consensus Estimate of a loss of 15 cents. Moreover, the
non-GAAP loss per share widened from the 16 cents loss reported in
the year-ago quarter.
Non-GAAP revenues (adjustments related to Solar Energy business
from direct sales and Financing sale-leasebacks) increased 33.9%
year over year to $577.6 million but fell short of the Zacks
Consensus Estimate of $641.0 million. The year-over-year revenues
were aided by higher solar project sales (up 86.8% year over year),
which offset lower sales of semiconductor materials (down 11.3%
year over year).
SunEdison's non-GAAP gross margins were down from 9.7% reported
in the year-ago quarter to 3.8%. The company's non-GAAP operating
loss of $103.6 million for the quarter significantly deteriorated
from $41.4 million operating loss reported in the year-ago quarter.
The year-over-year decline was attributed to higher operating
expenses (up 50.6% year over year) and holding costs related to
SunEdison reported non-GAAP net loss of $64.2 million or 25
cents per share compared with a loss of $35.5 million or 16 cents
SunEdison exited the first quarter with cash, cash equivalents
and restricted cash of $526.6 million compared with $643.6 million
in the previous quarter. Long-term debt (excluding current portion)
stood at $2.61 billion. The company used $215.2 million cash in
For the second quarter, SunEdison expects Solar energy system
sales volume in the range of 60 to 80 megawatts (MWs) while it
expects to complete 160 to 200 MWs Solar energy systems. The
company expects average project pricing to range between $2.85/watt
and $3.15/watt for solar energy systems.
SunEdison has also set its goal for fiscal 2014 as well. During
the period, the company expects Solar energy system sales volume in
the range of 460 to 580 MWs while it expects to complete 900 to
1150 MWs Solar energy systems. The company expects average project
pricing to range between $2.40/watt and $2.75/watt for solar energy
systems in fiscal 2014.
SunEdison reported dismal first-quarter results. Although
revenues increased on a year-over-year basis, higher-than-expected
operating expenses were responsible for the disappointing
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
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 stock worth considering is
), which sports a Zacks Rank #1 (Strong Buy).
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