EPS & Earnings ... Hits & Misses

[madrose1]

SPWR $31~$35.50 beats by $0.02, beats on revs; guides Q1 and FY06 revs above consensus (SPWR) 30.13 : Reports Q4 (Dec) earnings of $0.02 per share, excluding non-recurring items, $0.02 better than Reuters Estimates consensus of $0.00; revenues rose 519.0% year/year and 34% sequentially to $29.3 mln vs the $26.8 mln consensus. Co issues upside guidance for Q1, sees EPS of $0.02-0.04, ex-items vs. $0.02 consensus; sees Q1 revs of $38-40 mln vs. $36.4 mln consensus. Co issues upside guidance for FY06, sees FY06 revs in excess of 210 mln vs. $208.07 mln consensus.



Sunpower earnings call summary (SPWR) 34.88 +4.75: During this qtr, the co will have capacity of 75 mw. On demand visibility, co noted customers are responding incredibly favorably. Co noted they have a backlog of $700 mln of orders. Co's goal is to have 4-5% market share in 2006. During Q&A, co notes they are going to be very aggressive on capacity expansion. Co notes based off of guidance, gross margins for Q1 should be 18-19%. Co sees Asia as a market they will be very busy in from a market development standpoint. Co noted 2006 is a strategic year aligning with supply base to push technology further. Co should gain share and lay foundation for aggressive ramp. In 2007, co noted its possible the silicon shortage abates. If it does, co wants to be there to exploit it.