Solar products company SunPower Corp. (SPWR) on Wednesday forecast adjusted results for the second quarter above analysts' estimates and also projected fiscal 2013 adjusted results in line with their expectations. The company's shares are gaining more than 8 percent in the regular trading session.
For the second quarter, San Jose, California-based SunPower forecasts reported net loss of $0.25 to $0.15 per share, revenue of $540 million to $590 million and gross margin of 13 percent to 15 percent. On an adjusted basis, the company projects net income of $0.05 to $0.15 per share, revenue of $550 million to $600 million, and gross margin of 14 percent to 16 percent.
On average, analysts polled by Thomson Reuters expect the company to report loss per share of $0.02 for the second quarter on revenue of $513.31 million. Analysts' estimates typically exclude one-time items.
For fiscal 2013, SunPower forecasts reported earnings in a range of loss of $0.05 per share to profit of $0.20 per share, revenue of $2.6 billion to $2.7 billion, and gross margin of 15 percent to 17 percent. On an adjusted basis, the company projects net income of $0.60 to $0.80 per share, revenue of $2.5 billion to $2.6 billion and gross margin of 15 percent to 17 percent.
The Street expects the company to report earnings of $0.64 per share for the year on revenue of $2.55 billion.
SunPower further said that it remains committed to reducing its operational expenses for the year by 10 percent compared with last year. The company expects to generate free cash flow, including lease financings, in a range of $100 million to $200 million while continuing to invest in its technology roadmap and manufacturing cost reduction initiatives.
SunPower will provide additional details on the company's second-quarter and fiscal year 2013 outlook during its 2013 Analyst Day to be held later today.
In early May, SunPower reported a loss for the first quarter that narrowed from last year on higher revenues. The company's net loss for the quarter was $54.7 million or $0.46 per share, narrower than loss of $74.5 million or $0.67 per share in the year-ago period. Revenue for the quarter rose to $635.4 million from $494.1 million in the prior-year period.
In Wednesday's regular trading session, SPWR is trading at $20.61, up $1.58 or 8.31 percent on a volume of 4.40 million shares.
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