As SunPower Readies Its 3Q16 Results, It Basks in a Key Acquisition



SunPower’s 3Q16 earnings

SunPower (SPWR) is expected to announce its 3Q16 earnings results on October 26, 2016, after market hours. In this series, we’ll look at analysts’ expectations for SunPower’s 3Q16 earnings. We’ll discuss factors that led analysts to arrive at these expectations. We’ll also look at the company’s 2016 guidance and the key indicators that investors should watch.

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Stock performance

From its 2Q16 earning release on August 9, 2016, until October 18, 2016, SunPower’s stock price lost nearly 42% in value. Stock prices of other major solar companies such as First Solar (FSLR), JA Solar (JASO), Yingli Solar (YGE), and Trina Solar (TSL) followed a similar trend during the same period.

JA Solar stock lost nearly 20% after SunPower’s 2Q16 results were released through October 18, 2016. SunEdison (SUNEQ) and First Solar lost nearly 39% and 5%, respectively, during the same period. However, Canadian Solar gained nearly 3%.

The Guggenheim Solar ETF (TAN), which tracks the broad-based solar market, lost nearly 8% during the same period.

Post-2Q16 developments

On September 19, 2016, SPWR announced that it was acquiring AUO’s portion of its Malaysian-based solar cell manufacturing joint venture. As a result, the company can completely control the 800 mW (megawatt) solar cell fabrication facility.

According to the company’s press release, SPWR will pay AUO $170 million over the next four years under the stock purchase agreement. Moving ahead, SunPower plans to upgrade this manufacturing facility to cater the future demand for its solar products.

In the next part of this series, let’s see how analysts rate SunPower Corporation.


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