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quarterly earnings

SunPower Misses Q4 Earnings & Reports Net Loss, Investors Remain Confident

by Joshua S Hill February 19, 2017

Originally published on CleanTechnica
by Joshua S Hill

The number two US solar PV manufacturer SunPower reported its earnings for the fourth quarter and full year 2016 this week, reporting a larger net loss than expected, and missing analyst expectations for revenue.

It’s been a rocky few quarters for SunPower, America’s second solar PV manufacturer. In November the company reported solid earnings, but dire warnings for the future, which saw the company’s shares tank. Tom Werner, SunPower president and CEO, explained that ““While prospects for long term solar industry growth remain strong, we are seeing a significant near term market dislocation in the solar market that we expect will impact our financial performance through 2017.” SunPower also announced a restructuring program which would lead to workforce, production, and capital cuts.

Unfortunately for SunPower, reporting its fourth quarter and full year 2016 earnings this week, the company reported 2016 revenue of $2.5 billion — well within the guidance it presented a quarter ago, and well up on full year revenue for 2015 ($1.5 billion) — but fell well short of its gross margin guidance (7.4%, down on guidance of between 8% to 10%) and reported a much larger net loss than was expected (a net loss of $471 million, compared to a guided net loss in the range of $295 million and $320 million). This equates to a net loss attributable to stockholders of $275 million, or $1.99 per share.

“SunPower’s diversified business model enabled us to meet our revenue plan and exceed our operating cash flow target in the fourth quarter,” said Tom Werner. “While overall industry conditions remain challenging, we are encouraged to see continued solid demand for our complete solutions offerings in all three end segments.”

“Despite the difficult industry environment, our solid execution enabled us to achieve our key financial metrics for the quarter, including generating $485 million in operating cash flow, which we used to reduce our debt by approximately $500 million,” added Chuck Boynton, SunPower chief financial officer. “Our focus this year remains on improving cash flow, prudently managing our working capital and deleveraging the balance sheet. We believe that this will position us well for success as the solar industry transitions through the current challenges to sustainable profitability.”

Despite the doom and gloom, and a mild downtick in the company’s shares following the quarterly earnings announcement, SunPower shares retained their value and finished trading on Wednesday actually up a few cents. This likely has to do with the company’s firm guidance for 2017, which appears to take note of the difficult challenges ahead for the industry. Specifically, SunPower is guiding revenue for the full year 2017 to be in the range of $1.8 billion to $2.3 billion (GAAP — $2.1 billion to $2.6 billion non-GAAP) and a total of between 1.3 gigawatts (GW) and 1.6 GW deployed. The company is also expecting to incur GAAP restructuring charges totaling between $50 million to $100 million.

For the first quarter, SunPower is expecting revenue of between $315 million and $365 million, a gross margin of -2% to 0%, and a net loss of between $175 million to $150 million.

February 19, 2017 0 comment

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Better Than Expected Third Quarter For Canadian Solar

by Joshua S Hill November 11, 2015

written by Joshua S Hill

Canadian Solar has reported a better than expected third quarter, with increased revenue and solar module shipments.

The Canadian-based solar power company published its third quarter earnings report on Tuesday, revealing a quarter made up of 1,198 MW worth of solar module shipments, of which a total of 1,150 MW was recognized in revenue. This compares favorably with the previous quarter, which saw 809 MW worth of shipments recognized in revenue, and 770 MW recognized in revenue in Q3’14.

Net revenue for the quarter was similarly impressive, up to $849.8 million from Q2’s $636.7 million — though, year-over-year, the company’s revenue dropped 7.1% from $914.4 million.

The Americas represented 52.6% of net revenue in sales, followed by Asia which represented 41.3%, with sales to the remainder of the world accounting for the final 6.1%. This represents 5-point growth in the Americas, with conversant drops everywhere else.

“This has been a solid quarter as we benefited from strong demand for our modules in the US, Japan, China and India,” explained Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar.

“We also made good progress on our Energy business, as we expanded our fleet of operating power plants in Japan and in Canada, grew our pipeline of high quality solar projects in Brazil and China, closed the sale of a controlling interest in our 200 MW Tranquillity Solar Project in California and secured financing for three of our seven U.S. projects.”

Canadian Solar is expecting total module shipments for the fourth quarter to be in the range of 1,300 MW and 1,350 MW, which includes 170 MW to its own utility-scale solar power projects (which may or may not be included in 2015 revenue). Total revenue for the fourth quarter is expected to be in the range of $930 million and $980 million, with a gross margin between 13% and 15%.

“We were able to deliver a 33.5% increase in net revenue to $849.8 million in the third quarter, compared to the second quarter,” added Michael G. Potter, Canadian Solar’s Senior Vice President and Chief Financial Officer.

November 11, 2015 0 comment

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SunEdison Beats Own Forecast With Record Third Quarter, Stocks Plummet

by Joshua S Hill November 11, 2015

written by Joshua S Hill

Despite a record third quarter delivery, the world’s largest global renewable energy development company, SunEdison, saw its stocks plummet 22%.

SunEdison has been under intense pressure over the last six months to perform across all metrics, a task that shareholders do not believe the company is living up to. In its third quarter financial earnings announcement, SunEdison revealed that it had delivered 640 MW through the quarter, smashing its own previous guidance of delivery between 540 MW to 600 MW. This puts the company up 343 MW year-over-year, with another 2.9 GW of projects under construction, and a pipeline of 7.9 GW and backlog of 5.5 GW.

The company brought in revenue of $476 million for the quarter, including reported adjusted revenue of $153 million from their widely publicized yieldco, TerraForm Power, and reported revenue of $29 million from the company’s newest yieldco, TerraForm Global.

However, despite relatively decent performance across the board from the company — and only slight losses for its two yieldcos — SunEdison also reported a loss of $0.92 per share — originally forecast to be only $0.60 per share — which subsequently managed to scare investors enough to cause the stock price to plummet.

“During the third quarter, we continued our track record of execution within the development business by delivering over 600 MW, more than double versus the prior year,” said Ahmad Chatila, SunEdison chief executive officer. “In addition, we made the difficult, but necessary decision to optimize our organization in the face of the current market conditions within the yieldco space. These changes will not only set up the business for long-term success, but also should position the development business to generate positive cash flow in mid 2016.”

MarketWatch is reporting that Wall Street has not lost any of its confidence in the company, despite its performance on the stock market today, with some analysts describing investors reaction to SunEdison’s earnings report as “unwarranted.”

SunEdison’s shares have been on a months-long downward-trend, after second quarter earnings which reported a net loss of $263 million that sent investors scurrying for safety — despite the confusion of many analysts. Investor reaction has forced SunEdison to refocus their attentions from acquiring capacity and equity, and to begin building up revenue. SunEdison announced that it would form a new $1 billion warehouse investment vehicle that it hoped would be the first sign it was turning their ship around, followed last month by the decision to lay off 15% of its work-force.

The long-term gains of SunEdison’s original acquisition-phase would have been of long-term benefit to investors, but short-term gains seem to be the order of business. The most telling factor will be the reaction over the next several months, and in particular, following the company’s fourth quarter and full-year 2015 earnings report due early next year.

November 11, 2015 0 comment

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First Solar Sees Strong Growth In Record-Breaking Third Quarter

by Joshua S Hill November 10, 2015

written by Joshua S Hill

First Solar has recorded third quarter financials replete with record sales, earnings per share, and bookings.

One of the world’s largest solar PV developers and manufacturers, First Solar recorded an impressive third quarter this year, with increases to record-levels of net sales, GAAP earnings per fully diluted share, and quarterly and year-to-date bookings.

Specifically, First Solar saw net sales of $1.27 billion in the third quarter, up 42% on Q2’15 and 43% year-over-year. The company’s quarterly GAAP earnings per fully diluted share also increased to $3.38, up from $2.34 a quarter earlier, and $2.51 a year earlier.

First Solar took in record bookings of 1.7 GW (DC) during the quarter, bringing its year-to-date bookings up to 3.1 GW (DC). The company also has in excess of 1 GW worth of bookings for project delivery after 2016, and another 17.4 GW of potential booking opportunities.

First Solar was forced to put out a preliminary earnings report late October, due to the need to analyze “a discrete income tax matter related to a foreign jurisdiction.” Nevertheless, First Solar reported that “third quarter 2015 net sales, gross margin and ending cash balances were all unchanged from the preliminary results.” However, earnings per share increased to the aforementioned $3.41, up from the preliminary $3.38.

“We had tremendous execution in the third quarter from both a financial and bookings perspective,” said Jim Hughes, CEO of First Solar, in the preliminary earnings announcement. “We have now exceeded our book-to-bill target for the year, booked over 1GWdc of volume with deliveries after 2016, achieved strong quarterly earnings and have significantly raised our full year earnings guidance. We remain confident in our long term strategy and our ability to execute successfully.”

November 10, 2015 0 comment

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REC Solar Boosts Shipments In Q3 Reaching Sales Record

by Joshua S Hill November 9, 2015

written by Joshua S Hill

Integrated PV module manufacturer REC Solar has released its third quarter earnings, revealing a boost in shipments and sales.

REC Solar is Europe’s largest brand of solar panels, having produced more than 15 million panels by the end of 2014. Based out of Norway, the company revealed its third quarter financial earnings report this past week. The company saw an all time high quarterly revenue figure of $234 million, up 39% compared to just a quarter earlier. Shipments were up, jumping 100 MW to 361 MW, with module sales to the US of 207 MW, accounting for nearly 60% of the company’s total Q3’15 sales.

As can be seen, however, the geographic split across the year is much more evenly spread, and dominated substantially by China.

The company is also expecting its annual global module sales to reach around 59 GW by the end of 2015, and jump another 10% by the end of 2016 to 65%, before plateauing somewhat afterwards.

“We are extremely proud on this record quarter, demonstrating our sustainable and profitable growth, quarter after quarter,” said Steve O’Neil, CEO at REC Solar.

“Continuously declining PV system costs are one of several key drivers for the industry. We are also expecting a strong agreement at the UN Climate Change conference, reflecting the ambitious targets on emissions and renewable energies set by around 150 countries worldwide in advance. This should further increase solar’s momentum, which we will continue to leverage. Besides expanding our module capacity to 1.7 GW by end of 2016, we are exploring new business models and penetrating new emerging markets.”

REC Solar is looking towards strengthening its footprint in the Middle East, as well as opening up new regions in Africa.

November 9, 2015 0 comment

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SolarEdge Reports Record Quarter Results

by Joshua S Hill November 6, 2015

written by Joshua S Hill

Israeli-based solar PV inverter manufacturer SolarEdge reported record quarter revenue this week, taking in $115.1 million.

In the company’s first quarter-2016 financial earnings report (Q1’16), SolarEdge reported record revenue of $115.1 million, up $16.9% on the quarter-previous, and up 71.8% year-over-year. The company shipped 356 MW (AC) of solar inverters during the quarter, which according to PV-Tech equates to 1,460,000 power optimizers and 54,000 inverters, with North America remaining the company’s largest market, receiving shipments of 232 MW.

“We are very satisfied with another strong quarter of record revenues and improved gross margins,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “In addition to our very positive financial results, this quarter we introduced our new HD Wave inverter topology, demonstrating our technological leadership in the market. We are confident that our global presence and expanded product offering position us well for continued growth.”

SolarEdge’s net income was up this quarter as well, increasing to $14.4 million from its previous $9.3 million, and $2.5 million a year earlier. Earnings per share also benefited from a strong quarter, reaching $0.32, up from $0.21 in the previous quarter, and up from $0.00 year-over-year.

Guidance for the company’s second fiscal quarter stands at expected revenue in the range of $118 million and $121 million, and gross margins between 28.0% and $30.0%.

This is at least the third quarter in a row that SolarEdge has managed to achieve record revenue, after managing the same in both its third and fourth quarters during its 2015 fiscal year, which ended on June 30. These record quarters helped push the company to a yearly total of revenue of $325.1 million — a 144% growth over the year previously — and shipments of 920 MW.

November 6, 2015 0 comment

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SolarWorld Grows Sales & Revenue In Q3

by Joshua S Hill November 4, 2015

written by Joshua S Hill

Germany solar giant SolarWorld has reported increased shipments and revenue in its third quarter earnings report last week.

Reporting to shareholders last Thursday, SolarWorld reported increased shipments of solar power modules and kits across the first three quarters of the year of 25%, reaching 755 MW, up from Q1-Q3’2014’s 602 MW. The US was the largest of the company’s receiving markets across that time, growing by 61% compared to 2014. SolarWorld also raised its shipments in its home of Germany by 30%.

Solarworld’s consolidated revenue grew by 30% to € 532 million, up from € 409 million in the first three quarters of 2014.

The company also expects to exceed its guidance on shipments and group revenue for the full-year 2015, surpassing original forecasts of 1 GW of shipment and a revenue forecast of € 700 million, and the SolarWorld Management Board believes it can reach a positive EBIT in the fourth quarter.

November 4, 2015 0 comment

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SunPower Reports Strong Quarter, Despite Net Loss

by Joshua S Hill October 29, 2015

written by Joshua S Hill

US solar panel manufacturer SunPower revealed a strong Q3 despite a lack of revenue growth and a net loss.

These may sound like contradictory statements, but SunPower is currently in the midst of moving towards a different financial model that focuses more on retaining assets rather than selling them — subsequently impacting the quarterly revenues and overall net income/loss.

Specifically, SunPower is gearing up to drop a number of projects down to its new yieldco, 8point3 Energy Parnters. According to SunPower president and CEO Tom Werner, SunPower has already handed over the 135 MW Quinty solar project — which is on track to be recognized as non-GAAP revenue in the fourth quarter. In addition, SunPower completed work on the 8 MW Riverside Public Utilities project as well as the 12 MW Roc du Doun power plant in France, and 40 MW worth of projects developed for Apple in China.

SunPower was also awarded a 20 MW project for Sulphur Springs Valley Electric Cooperative in Arizona, which is scheduled for delivery in 2016.

In the third quarter, SunPower recorded GAAP revenue of $380.2 million — steady with the $381 million they took in during Q2’15, but well below the third quarter of 2014, which under their old model of selling rather than holding assets, the company took in $662.7 million. The company also recorded a net loss of $56.3 million for the quarter, well down on the $6.5 million net income from Q2’15, and obviously even further down on Q3’14’s $32 million.

“Our strong quarterly results reflect the continued success of our customer first, complete solution strategy as we executed well on our project commitments and exceeded our key financial targets for the quarter,” said Tom Werner. “Operationally, we met our cell and balance of systems cost targets and shipments of our industry leading technology now exceed one million cells per day. With Fab 4 scheduled for large volume production next year, we believe we will have the capacity to meet customer demand for our high efficiency, high quality solutions.”

SunPower also provided GAAP guidance for the following fourth quarter of revenue between $300 million and $350 million, a gross margin of between 5% and 6%, and a total of between 275 MW and 305 MW deployed for the quarter.

For the fiscal year 2015 SunPower is expecting GAAP revenue of between $1.50 billion and $1.55 billion and a gross margin of between 15% and 16%.

“The solid execution of our downstream strategy enabled us to post strong financial results for the quarter, including generating $54 million in EBITDA,” added Chuck Boynton, SunPower CFO. “In relation to working capital, we increased inventory in the third quarter in preparation to meet our significant 2016 backlog while adding assets to our holdco asset base. With solid industry fundamentals, a diversified end channel strategy, new product introductions, and further commitment to our manufacturing cost reduction roadmaps, we are well positioned for profitable growth in 2016.”

October 29, 2015 0 comment

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Sunrun Shows Strong Growth In Second Quarter Earnings

by Joshua S Hill September 15, 2015

written by Joshua S Hill

Via CleanTechnica:

Newly-public residential solar provider Sunrun has shown strong growth in its second quarter, its first following its IPO in August.

Sunrun, which declares itself “the largest dedicated residential solar company in the United States,” revealed that it had booked 61.2 MW in the second quarter, an increase of 59% on the first quarter of 2015, and a 70% growth year-over-year. The company deployed a total of 42.4 MW, which represented a growth of 76% year over year, and brings the company’s cumulative deployment up to 472.5 MW.

“2015 has been an exciting year for Sunrun. We gained momentum towards our goal of creating the industry’s most valuable and satisfied customer base,” said Lynn Jurich, Sunrun’s CEO. “We ended the quarter with approximately 87,000 customers and a 60% increase in our quarterly NPV to $37.2 million, which we achieved through accelerated reductions in creation costs.”

Net Present Value (NPV) hit $37.2 million, which was a 60% increase over the first quarter of the year, which stood at $23.3 million.

The company provided relatively moderate guidance for the third quarter and full year, expecting between 54 and 55 MW deployed in the third quarter, which it says “represents 81% organic growth year-over-year at the midpoint.” For the full year, Sunrun expects the total deployed capacity to be in the range of 205 MW.

As of a July report from GTM Research, Sunrun is currently the third residential solar financier in the US, behind SolarCity and Vivint Solar. The report’s primary conclusion was that 72% of the 1.2 GW of residential solar installed in the US was third-party owned, with Sunrun taking in 10% of that total (behind SolarCity’s 34% and Vivint Solar’s 12%).

September 15, 2015 0 comment