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SunPower Reports Q4 Results (SPWR)

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Shares of SunPower (NASDAQ: SPWR) gained as the Company’s fourth-quarter loses turned out to be lower than expected. SunPower announced a fourth-quarter loss of $83.1 million, or 84 cents a share.

Last year, the Company reported a profit of $152.3 million, or $1.44 a share, for the same period. The Company also expects to make profits from 2012. Shares climbed 15% to $8.58 in after-hours trading as the company’s adjusted profit beat the market estimations.


SunPower Reports Strong Q4 Results SunPower and its rivals have witnessed their revenues falling and bottom line shrinking due to oversupply of solar panels in the market. Besides, the Government policy changes have also cut the demand for solar panels, negatively impacting the demand and prices.

SunPower, whose major holder is French oil major Total S.A., is dealing with  the “turbulent market” through cost cutting measures;  and, simultaneously looking for new markets, like the Middle East, where it can compete on cost with fossil-fuel power generation, says Tom Werner, the company’s chief executive.
In an interview to Fox Business News, Mr. Werner appeared optimistic as he believes “great outlook for this year”. He also added that solar panel prices will stabilize from this year and would fall at a slower rate than the last year.

San Jose-based Company is now banking on innovation to cut the competition. The company will focus on innovations like a tracking system that concentrates sunlight onto solar panels to boost the amount of electricity they produce, and on building large solar power plants. Werner believes that the tracking technology would make it possible for the company’s power plants to generate electricity at a cost which would be about one-fifth less rival technologies.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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