This article was sourced from Market Watch. Article by Claudia Assis.
Stock has largest percent fall in a year, marring outperformance
Shares of SunPower Corp. on Wednesday fell the most in nearly a year after expectations of lower sales in the current quarter marred the solar-power company’s narrower-than-expected quarterly loss.
SunPower SPWR, -19.32% stock fell more than 20%, its largest decrease since August 10, 2016, putting it on track for the lowest close in three weeks. The shares are down 41% from their 52-week high of $15.30, reached Aug. 8, 2016.
SunPower late Tuesday reported an adjusted loss of 35 cents a share on sales of $342 million. Analysts polled by FactSet had expected the company to report an adjusted loss of 46 cents a share on sales of $313 million.
SunPower, however, forecast adjusted revenue of $320 million to $370 million for the July-September quarter, whereas the analysts surveyed by FactSet forecast sales of around $500 million.
The company also lowered the high end of its full-year guidance due to permitting delays and land-right issues around two projects in Mexico.
The losses come as SunPower stock as well as shares of other major U.S. solar companies have outperformed the broader market in 2017 and in the past three months.
That’s on the heels of a filing by U.S. solar-panel maker Suniva seeking protection from low-cost imported panels, analysts at Goldman Sachs said in a recent note.
U.S. trade authorities are expected to decide on the pending trade case by a Sept. 22 deadline, but “investors’ optimism around the potential for higher pricing and better earnings across the group in (the second half of the year) saw a marked increase, based on our discussions with investors,” the Goldman Sachs analysts said.
SunPower has benefited from a better demand and pricing landscape given the pending solar import tariff decision, said Angelo Zino, an analyst with CFRA. Zino is cautious on demand thereafter, however.
Shares of SunPower have gained more than 37% so far this year, which compares with gains around 10% for the S&P 500 index. SPX, +0.05%