SunPower Corporation (NASDAQ:SPWR) released the earnings results for the third quarter before opening bell this morning, posting non-GAAP earnings of 30 cents per share on GAAP $662.7 million in revenue. Analysts had wanted to see earnings of 24 cents on $628.7 million in revenue. GAAP earnings were 20 cents per share, compared to 73 cents per share in last year’s third quarter.
In the same quarter last year, SunPower posted earnings per share of 44 cents on $657 million in revenue.
SunPower’s earnings by geography
SunPower reported a GAAP gross margin of 16.4%, compared to last year’s 29.4%. Non-GAAP gross margin was 16.7%, compared to 19.1% last year.
The company reported that most of its business was again in North America. SunPower’s 579-megawatt Solar Star Projects for MidAmerican Solar is on track. The company has connected 309 megawatts to the grid so far. SunPower also closed financing for its 135-megawatt Quinto project.
The solar power system installer booked 20 megawatts of power purchase agreements from commercial customers during the quarter. That includes a 16-megawatt system for the University of California at Davis, which will be the biggest solar power plant on any university or college campus in the U.S.
In Europe, the Middle East and Africa, SunPower reported stable pricing and said it was awarded a four project 41-megawatt supply agreement for a subsidiary of GDF Suez, a French utility company. That’s part of the French national tender program.
SunPower said Japan continued to drive its Asia Pacific segment, making up 28% of total shipments during the quarter. In China, they expect to install over 30 megawatts of C7 power plant systems by the year’s end.
SunPower provides guidance
The solar company said it expects non-GAAP revenue for the fourth quarter to be between $575 million and $625 million. SunPower projects a gross margin of between 19% and 21% and net income of between 15 cents and 30 cents per share. Management expects to recognize between 300 megawatts and 340 megawatts in projects during the fourth quarter. The company projects GAAP revenue of between $675 million and $725 million, a gross margin of between 22% and 24% and net income of between 20 cents and 35 cents per share.
For the full year, SunPower projects non-GAAP revenue of between $2.58 billion and $2.63 billion, a gross margin between 19% and 20% and net income of between $1.25 and $1.40 per share. The company expects to recognize between 1.26 gigawatts and 1.3 gigawatts in projects for the full year.
On a GAAP Basis, SunPower expects revenue of between $2.535 billion and $2.585 billion, a gross margin of between 20% and 21% and net income of between $95 cents and $1.10 per share for the full year.