SunPower
The increase in stock price sent a ripple through the solar global industry, pushing up share prices for companies like prime rival First Solar, Canadian Solar, Yingli Green Energy, SolarWorld, Q-Cells and Renewable Energy Corp.
Ironically, SunPower's profit for the second quarter actually dropped 22 percent to $24.2 million since last year, as solar equipment sales continue to slide (sales dropped equally 22 percent to $297.6 million). The surprise is that there was any profit at all. The company has spun the results as a victory -- emphasizing that it beat industry forecasts by a long shot. Also positive: It maintained prices as others dropped around it, and it managed to hold on to its market share.
Positive trends in the solar market -- increasing demand, more liquid funding, etc. -- have also given San Jose, Calif.-based SunPower reason to be optimistic, the company says. It hasn't been an easy year, after all. Its stock fell 33 percent so far this year, and it was forced to raise $458 million stock and debt in May to keep its pipeline flowing (a move that diluted its shares by 12.5 percent). It turned to overseas manufacturing partners to take on some of its work as well.
SunPower is one of the companies waiting eagerly for cleantech stimulus funds to land. But it's no doubt celebrating its analyst-busting returns. Industry watchers had predicted the company would bring in $263 million of revenue, some $30 million less than the actual figure. Likewise, its second-quarter profit hit 26 cents per share, topping predictions of 24 cents per share.
For now, SunPower is feeling pretty good about the impact federal funding will make in the latter half of the year. It even upped its full-year revenue targets from around $1.3 billion to somewhere between $1.35 and $1.7 billion. The stimulus package should boost demand for solar projects and equipment, the company says. Plus, it has a new roof mounting system and regional manufacturing strategy to help it take better advantage of the shifting landscape.