SunPower's 2Q15 Earnings Marked by Birth of 8point3 Energy
(Continued from Prior Part)
Mixed bag
SunPower’s (SPWR) 2Q15 earnings were a mixed bag. At $381 million, revenues came in much lower than the $500 million analysts had expected. Meanwhile, adjusted net income came in at $27.2 million, or $0.18 per share, against Wall Street analyst–projected $18.6 million, or $0.16 a share.
Out of 14 analysts surveyed by Bloomberg, eleven give SPWR a “buy” rating and two rate it “hold.” Only one analyst assigns a “sell” rating to the stock. On July 28, the day of the firm’s earnings release, SunPower (SPWR) stock rose 10% on better-than-expected revenue guidance and higher-than-expected net income.
Notable ratings
On average, analysts expect that the stock will reach $40.30 in the next 12 months, up from $25.09 as of August 7, 2015. This would imply a better-than 60% return. At the current price, SPWR is one of analysts’ favorite solar stocks (TAN).
RBC Capital Markets (RY) rates SPWR “outperform” and sets a 12-month price target of $37 for the stock. RY also rates SunEdison (SUNE), Trina Solar (TSL), and KA Solar (JASO) “outperform.” In contrast, RY rates FirstSolar (FSLR) “underperform” and sets a price target of $38 for the stock against its closing price of $52.09 as of August 7.
Morgan Stanley (MS), JP Morgan (JPM), Credit Suisse (CS), and Goldman Sachs (GS) rate SPWR “overweight,” “outperform,” “buy,” or “attractive.” Morningstar (MORN) and UBS (UBS) give the stock a “hold” rating.
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