SunPower's Cloudy Results: Fool by Numbers

On Oct. 18, SunPower (Nasdaq: SPWR  ) released third-quarter earnings for the period ended Sept. 30.

  • The good news? Revenue increased 258.6% year over year, and 34.9% sequentially. According to CEO Tom Werner, "The overall solar business environment continues to be characterized by rapid and dynamic growth."
  • The bad news? Dilution ran hot over the past year, with the diluted share count rising 11.8%, while operating income rose only 5.5% year over year.
  • SunPower is rated three stars in Motley Fool CAPS, our investing intelligence community. Meanwhile, Rule Breakers selection Suntech Power (NYSE: STP  ) has earned a five-star rating.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$234.3

$65.3

258.6%

Net Profit

$8.4

$9.6

(11.9%)

EPS

$0.10

$0.13

(23.1%)

Diluted Shares

82.6

73.9

11.8%

Get back to basics with the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

16.4%

23.2%

(6.9)

Operating Margin

2.9%

9.9%

(7.0)

Net Margin

3.6%

14.6%

(11.0)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$454.5

$273.6

66.1%

Accounts Rec.

$82.8

$47.1

75.9%

Inventory

$99.9

$26.1

283.4%

Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

$102.8

$35.0

194.2%

Long-Term Debt

$425.0

$0.0

N/A

The balance sheet reflects the company's health.

Cash Flow Highlights
The company provided no cash flow statement, leaving investors in the dark.

Free cash flow is a Fool's best friend.

Related Foolishness:


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