Energy
SunEdison Posts Surprise Profit, Sharply Higher Revenues
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For the third quarter of 2014, the company expects to ship 70 to 80 megawatts of solar energy systems and to complete 270 to 310 megawatts of solar energy systems. Average project pricing is projected at $2.60 to $3.00 per watt.
For the full year, SunEdison said it expects total non-GAAP sales volume of 290 to 320 megawatts and completed systems to total between 1,000 and 1,150 megawatts. The average project pricing is projected in a range of $2.50 to $3.00.
On a GAAP basis, SunEdison posted a net loss of $0.16 per share. That is far better than the $2.31 per share loss in the first quarter and the $0.45 loss in the second quarter a year ago. The non-GAAP EPS figure represents the company’s first operating profit margin in nearly two years.
The big news for the company was the May spin-off of its semiconductor business into SunEdison Semiconductor Ltd. (NASDAQ: SEMI), which resulted in $98.2 million in net proceeds to the mother ship. In late July, SunEdison spun out TerraForm Power Inc. (NASDAQ: TERP) and added $159.2 million in net proceeds. SunEdison continues to hold 56.8% of the semiconductor spin-off and 63.9% of TerraForm.
The company’s CEO said:
The second quarter was a transformational period for SunEdison. Our teams superbly executed multiple complex financing initiatives while keeping our core business on track. … With these accomplishments and our growing project pipeline, we believe we are increasingly well positioned to succeed in this rapidly growing and dynamic market.
SunEdison’s shares were up more than 5% in premarket trading, at $20.35 in a 52-week range of $6.24 to $24.35. Thomson Reuters had a consensus analyst price target of $26.25 before these results were announced.
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