What: Shares of SunPower Corporation (SPWR -3.17%) have jumped 12% today after the company reported earnings and guidance that came in ahead of expectations.
So what: SunPower's second-quarter non-GAAP revenue fell 39% to $376.7 million and non-GAAP net income fell 38% to $27.2 million, or $0.18 per share, $0.02 ahead of estimates.
There's a lot of turmoil on the income statement as SunPower transitions to a business model that includes holding projects in its yieldco, 8point3 Energy Partners, so that accounts for the declines in revenue and earnings for the quarter. What investors were focused on today was an increase in full-year EBITDA guidance to $425 million-$475 million, $25 million higher than the previous guidance. And management expects EBITDA to rise another 20% in 2016 when further growth should kick in from higher manufacturing production.
Now what: The bottom line for SunPower is that it has remained profitable while stashing projects on the balance sheet and in its newly formed yieldco. As the company moves into 2016 and it gets in a regular flow of selling projects to 8point3 Energy, it will have more transparent financials and the EBITDA growth figure shows some of the benefits of this structure. Long-term, SunPower is still well positioned for profitable growth in solar, and at just 8.6 times the midpoint of this year's EBITDA projection -- not including the value of its 40% stake in 8point3 Energy -- the stock seems like a steal for long-term investors.
