Shares of SunPower have lost about 30% of their value since the company released their Second Quarter 2016 financial results and announced a major realignment of their solar power plant segment and manufacturing operations.
SunPower actually beat analysts expectations for the quarter, reporting a loss of 22 cents per share on $420.5 million in sales, compared to a 24-cent loss on $345.1 million in sales expected by the market. But it was their revised outlook for the rest of this year, and next that caused investors to abandon the stock.
Here are the highlights of the announcement that sent the stock into a tailspin:
- SunPower expects sales to be between $700 million and $800 million in the current quarter(3rd quarter), significantly below the $1.13 billion analysts projected.
- As part of the realignment of their power plant segment, the company will close their Philippine panel assembly facility and transfer the equipment to their latest generation, lower cost facilities in Mexico.
- SunPower reduce their workforce by approximately 15 percent or 1,200 employees, primarily related to its Philippine facility closure.
- The company will estimates that restructuring charges totaling $30-$45 million.
- A substantial portion of charges to be incurred in the third quarter of 2016 with more than 50 percent of the total charges to be cash.
- SunPower expects annual operating expense reductions of approximately 10 percent.
- The company now expects a net losss of $175 million to $125 million for 2016, and a net loss of $200 million to $100 million.
Tracey is an accountant and entrepreneur with a passion for nature. This passion is what spurred her interest in renewable energy, and the rest is history as they say. Tracey is a principal in Energy Think Group, the publisher of Solar Thermal Magazine and Tek-Think. She is also the principal at Women’s Financial Help Desk. She spends her free time in the outdoors with her horses and dogs. She loves to travel.