) shares jumped 8.5% to $20.65 in the New York Stock Exchange as
the company provided its top as well as bottom line expectations
for the second quarter and the full year.
The second largest U.S.-based solar panel maker after
First Solar Inc.
) now sees second quarter non-GAAP revenue between $550 million
and $600 million, gross margin of 14%-16%, earnings per share
(EPS) between 5 cents and 15 cents, and 260-280 megawatts (MW) of
solar energy projects recognized.
Not having recognized any profit since 2010, the company now
expects to generate revenues between $2.5 billion and $2.6
billion, gross margin of 15%-17%, EPS between 60 and 80 cents,
1.0-1.1 gigawatts (GW) of solar project recognition and capital
expenditures of $60 million to $80 million, in 2013.
The San Jose, California-based company also expects to increase
the installed customer base by twofold from the 2012 level to
300,000 projects by 2015. Also, SunPower is focused on boosting
the panel efficiency level by 10% to 23% between 2012 and
Over the same timeframe, cost per watt is expected to decrease
35%. The company expects to deploy around 1.5 GW in 2015 as
against 1 GW in 2012, with the mix shifting to international
FIRST SOLAR INC (FSLR): Free Stock Analysis
JA SOLAR HOLDGS (JASO): Free Stock Analysis
SOLARCITY CORP (SCTY): Free Stock Analysis
SUNPOWER CORP-A (SPWR): Free Stock Analysis
SUNTECH PWR HLD (STP): Free Stock Analysis
TOTAL FINA SA (TOT): Free Stock Analysis
TRINA SOLAR LTD (TSL): Free Stock Analysis
YINGLI GREEN EN (YGE): Free Stock Analysis
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SunPower − majority-owned by French oil company
) − aims to cut 2013 operating expenses by 10% from 2012 levels.
Of late, solar stocks have been volatile and the industry is
still under pressure to cut expenses amid lower prices and
alterations in government subsidies. Investors are generally
looking for a more upbeat scenario for the solar groups and this
latest projection from SunPower boosted share prices of many
Chinese players, like
Suntech Power Holdings Co. Ltd.
, up 10.2%);
Trina Solar Limited
JA Solar Holdings Co., Ltd.
, 6.9%) and
Yingli Green Energy Holding Co. Ltd.
The leading U.S. installer of solar panels on home rooftops S
) rose 2.3% following a 12.4% drop on May 14 and a 24.2% gain on
May 13, following its earnings release. However, First Solar
shares edged down 1.1%.
Yingli Green, SolarCity and First Solar hold a Zacks Rank #3
(hold), while Trina Solar and JA Solar Holdings retain a
Zacks Rank #2 (Buy).
Though the momentum is back for solar stocks following the
positive guidance from SunPower, we remain on the sidelines due
to the glut of solar panels in the market, lower average selling
prices (ASPs), subsidy roll-back risk in Europe, rising
competition, financial stability of its customers and foreign