) fourth quarter 2012 adjusted earnings per share (including
stock-based compensation) of 10 cents per share were in stark
contrast to a loss of 3 cents per share incurred in the year-ago
quarter. The reported figure easily exceeded the Zacks Consensus
Estimate of 4 cents per share.
The results were driven by a diversified downstream channel
strategy, solid execution on cost saves and increased customer
demand for high efficiency and industry leading technology.
GAAP loss during the fourth quarter was $1.22 per share, which
included one-time charges of $1.32 per share, wider than the
year-ago GAAP loss of 94 cents per share.
In full year 2012, the company reported an adjusted loss of 18
cents per share, narrower than the Zacks Consensus Estimate of a
loss of 62 cents per share. Including one-time charges of $2.83,
GAAP loss per share was $3.01 per share.
SunPower generated revenues of $678.5 million, lower than the
Zacks Consensus Estimate of $778 million. However, the figure was
higher than the year-ago figure of $625.3 million.
In 2012, total revenue was $2,417.5 million, missing the Zacks
Consensus Estimate of $2,515 million. However, the top line was
above the year-ago number of $2,374.4 million.
During the quarter under review, revenues generated in the
Americas were $520.2 million compared with $323.5 million in the
prior-year period. Revenues in Europe, the Middle East and Africa
(EMEA) were $89.4 million versus $248.6 million in the year-ago
quarter. Revenues from Asia-Pacific (APAC) were $68.9 million, up
from $53.2 million in the year-ago period.
SunPower's gross margin for the quarter increased to 18.7% from
11.3% a year ago.
SunPower at the end of the reported period had cash and cash
equivalents of $457.5 million, compared with $725.6 million at
the end of 2011. Net cash from operating activities was 141.2
million, down from $164.7 million in the year-ago quarter.
In first quarter of 2013, the company expects total revenue in
the range of $475 million to $550 million. SunPower expects
earnings per share in the range of 5 cents to 20 cents in the
first quarter of 2013.
SunPower reported better-than-expected results with a number of
projects already in its kitty.
SunPower 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 customer base
is spread across North America, Europe, the Middle East, Asia and
Australia. Its agreement with
) for $100 million in lease financing capacity in the fourth
quarter has strengthened its position in the North American
residential lease segment.
In Asia, the company has expanded its presence in the Japanese
rooftop market. It also signed a joint venture in China to
manufacture SunPower C7 Tracker product for power plant projects.
Going forward, we are bullish on the company due to its
diversified channel strategy with a strong presence in the
residential and commercial market, along with its status as a
conversion efficiency leader.
However, like other solar players in the industry, namely,
JA Solar Holdings Co., Ltd.
Suntech Power Holdings Co. Ltd.
), SunPower too is facing excess solar cell and module capacity.
The industry at large has been affected by unnecessary inventory
arising from a supply glut and a corresponding underutilization
of capacity. This has led to a sharp fall in Average Selling
Prices. The company presently retains a short-term Zacks Rank #3
JA SOLAR HOLDGS (JASO): Free Stock Analysis
SUNPOWER CORP-A (SPWR): Free Stock Analysis
SUNTECH PWR HLD (STP): Free Stock Analysis
US BANCORP (USB): Free Stock Analysis Report
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