SunPower Corporation (SPWR) Shows Its Dominance in Solar

Foolish bottom line
SunPower’s stock dropped 10% today after earnings but for those following the company this is a virtually flawless report. Increased guidance is especially encouraging and management has been great at beating their own expectations so don’t be surprised if earnings are more than $1.30 for this year.

The other thing that may drive the company in the long term is capacity expansion. SunPower was capacity-constrained this quarter and management said it’ll be constrained for the next 18 months. Analysts prodded about when the company will add capacity. Based on the response from management, it sounds like the company will announce something in the next three months. That could drive SunPower into another growth phase, which is what the company needs now that it’s making a profit.

The article SunPower Shows Its Dominance in Solar originally appeared on Fool.com is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of SunPower and personally owns shares and has the following options: long January 2015 $7 calls on SunPower, long January 2015 $5 calls on SunPower, long January 2015 $15 calls on SunPower, long January 2015 $25 calls on SunPower, and long January 2015 $40 calls on SunPower. The Motley Fool has no position in any of the stocks mentioned.

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