SunPower In the Shade (SPWRA, WFR, FSLR, LDK)

One of the stalwarts of the solar business, SunPower Corporation (NASDAQ:SPWRA), has reported an EPS loss of -$0.06 on revenues of $214 million for the 2009 first quarter. Analysts had expected EPS of $0.24 and revenue of $269 million. Even the low estimate on EPS was higher than SunPower’s earnings.

Another solar-oriented company (and chip materials maker), MEMC Electronics Materials Inc. (NYSE:WFR), reported a net non-GAAP EPS loss  of -$0.05 yesterday, on weak sales. MEMC also lost a 10-year supply contract with a German solar company earlier this week.

On a non-GAAP basis, the company’s EPS was $0.05, still a 93% drop from non-GAAP EPS of $0.71 in the fourth quarter of 2008. According to the company’s CEO, “Our quarterly performance was impacted by seasonality, the continuing effects of the credit crisis and difficult economic conditions.” He also took comfort in the company’s gross margins, which totaled $47.75 million or about 22%.

SunPower’s guidance for 2009 included annual revenues of $1.3 billion – $1.7 billion and GAAP-EPS for $0.25-$0.75. The company expects to produce 400 megawatts worth of solar cells and panels, and has reduced its capital spending plans from $350-$400 million to $250-$300 million.

SunPower shares are getting slammed in pre-market trading, down more than 6%, to $24.30. The company’s 52-week range is $18.50-$107. MEMC is also down about half a percent. Other solar players, such as First Solar Inc. (NASDAQ:FSLR) and LDK Solar Co. Ltd. (NYSE:LDK) are mixed. First Solar is up a bit and LDK is down a very little bit.

Paul Ausick
April 24, 2009