SunPower Stock Loses 10% in 2Q15, but Why?



SunPower stock performance

In 1Q15, SunPower (SPWR) stock rose 21%, primarily due to the announcement of the joint formation of 8point3 Energy Partners (CAFD) in collaboration with FirstSolar (FSLR). But the stock gave up some of these gains toward the end of June 2015, when many major solar stocks also fell. The stock fell ~9.3% in 2Q15. Overall, the stock posted a 10% gain in 1H15.

The Guggenheim Solar ETF (TAN), the representative of the global solar industry, rose 30.3% in 1Q15 but fell 11.7% in 2Q15. Overall, the ETF recorded a 15% gain in 1H15.

While it rose 10% on the day of its earnings release, SPWR has given up some of that gain during the last few trading sessions over concerns about revenue visibility. It closed at $25.09 on Friday, August 7, with a market capitalization of $3.4 billion.

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SunEdison (SUNE) was the best performer in 1H15. It rose 50% during the period. The stock rose 23% in 1Q15 and 24.6% in 2Q15. However, the stock fell 35% after the company published its 2Q15 earnings last week. SunEdison’s losses escalated to $263 million in 2Q15 from $41 million in 2Q14. The stock closed at $14.96 on Friday, August 7, with a market capitalization of $4.7 billion.

SolarCity (SCTY), SPWR’s closest competitor in the residential solar space, fell 5.2% in 1Q15 and rose 4.4% in 2Q15, leading to a marginal loss in 1H15.

FirstSolar (FSLR), SPWR’s partner in 8point3 Energy Partners (CAFD), rose 34% in 1Q15 but fell 21.5% in 2Q15, primarily due to weaker-than-expected 1Q15 performance. However, a positive earnings surprise in 2Q15 helped the stock recover. The stock closed at $52.09 with a market capitalization of $5.3 billion on August 7, 2015.


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