Adjusted results do not include $13.5 million in stock-based compensation and $9.9 million in costs related to 8point3, the joint venture yieldco the company is establishing with First Solar. On a GAAP basis SunPower posted revenues of $440.6 million and a net loss of $0.07 per share.
Revenues fell by more than a third compared with the year ago quarter and by nearly two-thirds sequentially. Revenues fell in every division: residential, commercial, and power plant. The company is likely holding on to assets rather than selling them as it has done in the past. Some will be passed along to the yieldco at the time that entity goes public and others will be sent along or sold eventually. The hits to revenue now should be made up later.
SunPower said it would withhold guidance until it can finalize the estimates regarding the impact of the proposed yieldco on the company’s expected financial performance.
The consensus analysts’ estimates for the second quarter call for EPS of $0.26 on revenues of $584.58 million. For the full year analysts are looking for EPS of $1.14 on revenues of $2.34 billion.
The company’s CEO said:
Our solid first quarter results reflect the advantages of our global, diversified downstream strategy as demand for our high efficiency systems in both our power plant and distributed generation segments remains strong. Operationally, we achieved record quarterly output at our cell manufacturing facilities in the first quarter and continued to execute against our long-term cost reduction roadmap.
SunPower’s shares traded up about 0.2% in after-hours trading, at $32.24 in a 52-week range of $22.75 to $42.07. Thomson Reuters had a consensus analyst price target of around $41.60 before today’s results were announced.
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