Sunpower posts steep drop in 3Q profit

posted: 33 DAYS 9 HOURS AGO

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SAN JOSE, Calif. -Sunpower Corp., a manufacturer of solar power products, on Thursday reported a 48 percent drop in its fiscal third-quarter profit and reined in its forecast for full-year earnings.

Its adjusted third-quarter earnings were better than Wall Street expected but the company's shares tumbled in after-market trading following the release of the results and the more conservative outlook.

Sunpower reported net income of $12.8 million, or 13 cents per share, for the third quarter, down from $24.7 million, or 29 cents per share, a year ago.

After adjusting to exclude non-cash charges for amortization of intangible assets, stock-based compensation and a non-cash interest expense, income was $52.1 million, or 42 cents per share.

Analysts surveyed by Thomson Reuters expected, on average, earnings of 40 cents per share. Analysts typically exclude one-time charges from their estimates.

Revenue for the quarter ended Sept. 27 was $466.3 million, up 24 percent from $377.5 million in the same period last year.

Analysts expected revenue of $420 million for the quarter.

The San Jose company lowered the top end of its previous 2009 guidance. Sunpower said it expects adjusted earnings to be between $1.15 per share and $1.25 per share on revenue of $1.43 billion to $1.50 billion.

In July, the company said it expected per-share earnings of $1.15 to $1.60 on revenue of $1.35 billion to $1.7 billion.

Chief Financial Officer Dennis Arriola said the financing markets "remain challenging," but the company sees some improvement in project financing.

"By starting the fourth quarter with a solid backlog of business and a growing pipeline of opportunities, we are confident that SunPower will finish the year strongly and is well positioned for growth in 2010," he said.

In after-hours trading, shares fell $3.20, or nearly 10 percent, to $30.09. The stock closed up in regular trading by 94 cents, or 3 percent, to $33.30.

2009-10-22 18:46:45