SunPower Stocks Climb On Beat Earnings And Partnership Announcement


SunPower Earning ReportSunPower (SPWR) stocks are blowing up. Before the morning bell, SunPower (SPWR) released its earnings report; and provided investors with a positive surprise. The company not only beat earning expectations, they obliterated them. On top of that, SunPower (SPWR) announced yesterday that it is in advanced stage negotiations with First Solar (FSLR) in an effort to create a partnership. So, SunPower (SPWR) investors have plenty to be excited about. Today, we’ll talk about the quarterly report in comparison to expectations, we’ll look at the partnership plans between SunPower (SPWR) and First Solar (FSLR), and we’ll end with the reaction we’ve seen in the stock market as a result!

SunPower (SPWR)’s Q4 Earning Report

While analysts expected SunPower (SPWR) to revenue just over $607 million in the quarter, the company actually produced $609.7 million. When it comes to earnings per share, the company generated $0.26 per share in the quarter; also better than analyst expectations.

SunPower (SPWR) & First Solar (FSLR) To Create Joint YieldCo

Yesterday, SunPower (SPWR) announced that they were in advanced stage negotiations with First Solar (FSLR) in an effort to create the first ever partnership between solar giants. The joint YieldCo will be created through the use of some assets from each company’s portfolio. The decision was met by overwhelming investor approval. Among the world renowned experts weighing in with their approval was Deutsche Bank; with analyst Vishal Shah having the following to say…

This announcement, although expected, is a significant positive in our view…While SunPower had discussed plans to announce a YieldCo by early this year during their Analyst day, shares were clearly not discounting any upside potential from this YieldCo.”

Throughout the rest of Shah’s announcement, terms like “probably the best strategy”, “one of the best growth stories out there”, and more were used in pure expression of approval.

How SunPower (SPWR)’s Stock Reacted

Let’s face it, the first thing investors care about is earnings. If a company can earn, chances are that the company can grow. Between the fact that SunPower (SPWR) beat earning expectations and the fact that they’re creating a strategic partnership to increase dividends, investors couldn’t be happier. That’s clear through both the stock price growth throughout the day so far as well as what investors are saying online!

Stock Price Growth Morning Trading February 24th, 2015

Yesterday, SunPower (SPWR) stock closed the day off at $27.80 per share. Morning excitement following the partnership and positive earnings brought the price of the stock up to $32.78 by 9:50 AM. Since then, things have gotten a bit stagnant so far. Currently, 12:38, the stock is trading for $32.62 per share and I expect to see it increase to the $32.80 or above range by the closing bell.

What Investors Are Saying Online

Another way I like to gauge how investors feel about news is to read what they’re saying online. Here are some of the most recent comments about SunPower (SPWR) on
Holding through earnings has paid the most this yr for some big moves in growth stocks $AMZN $NFLX $PCLN $SPWR $FSLR $LNKD – by okrapeas

$FSLR, $SPWR congrats to all longs!!!!! You guys exhibited a great amount of patience. – by TheSunMan

Other News To Watch Out For Today In Earnings

First Solar (FSLR) – As I mentioned yesterday, First Solar (FSLR) will be releasing their earning report following the closing bell today. With SunPower (SPWR) doing so well, investors are expecting the same from First Solar (FSLR) and we’re already seeing a strong uptrend!

The Home Depot (HD) – The Home Depot (HD) will also be releasing their earning report after the closing bell today. This is another one that investors have high hopes for; so, we’re seeing a bit of upward movement in the stock price.

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