SunPower Q2 Results Top Estimates; Boosts 2013 EPS Outlook

(RTTNews) - Solar power products company SunPower Corp. (SPWR) reported Thursday a profit for the second quarter compared to a loss last year, despite a revenue drop, primarily reflecting significantly higher operating margins amid a drop in operating expenses. The company also raised its adjusted earnings guidance for the full-year 2013, while maintaining annual revenue forecast.

SunPower became a subsidiary of Total Gas & Power USA S.A.S. after French oil company Total SA (TOT, TTFNF.PK, TTA.L) made a $1.31 billion strategic investment in SunPowr at the end of the second quarter 2012 by acquiring a 60 percent stake in the solar panel maker.

"SunPower's strong results in the second quarter reflect solid operational execution, as well as continued demand for our high efficiency systems in both the power plant and distributed generation channels across all major geographies," President and CEO Tom Werner said in a statement.

The San Jose, California-based company posted net income of $19.6 million or $0.15 per share for the second quarter, compared to a net loss of $84.2 million or $$0.71 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $0.48 per share, compared to last year's $0.08 per share. On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share for the second quarter. Analysts' estimates typically exclude special items.

However, revenues for the quarter declined to $576.52 million from $595.90 million in the same quarter last year. Meanwhile, adjusted revenue of $650.04 million came in above ten Wall Street analysts' consensus estimates of $579.48 million.

Total operating expenses for the quarter declined to $76 million from $124 million in the prior-year quarter. Gross margin improved 640 basis points to 18.7 percent, and adjusted gross margin expanded 440 basis points to 19.5 percent from last year.

"Our North American business continues to be the cornerstone of our success as we completed panel installation at the California Valley Solar Ranch (CVSR) with full project completion expected by year end. Construction of the 579-megawatt (MW) Solar Star Projects for MidAmerican Solar continues," Werner added.

Looking ahead to the third quarter, the company expects adjusted earnings in a range of $0.15 to $0.35 per share, on projected adjusted revenues between $550 million and $600 million. Analysts expect the company to report third-quarter earnings of $0.19 per share, on quarterly revenues of $682.18 million.

For fiscal year 2013, the company raised its adjusted earnings guidance to a range of $1.00 to $1.30 per share from the prior forecast of $0.60 to $0.80 per share. However, the company continues to project revenues between $2.5 billion and $2.6 billion.

Street is currently looking for full-year 2013 earnings of $0.77 per share on annual revenues of $2.57 billion.

SPWR closed Wednesday's regular trading at $27.65, down $0.45 or 1.60% on a volume of 6.55 million shares. The stock lost a further $0.69 or 2.50% in after-hours trading.