Earnings Preview: SunPower (SPWRA)

SunPower SPWRA is set to report earnings tonight after the bell, and Wall Street will be listening to what the solar company has to say about the health of the industry, in light of economic concerns primarily in Europe. At last check, shares of SunPower were off 1 cent to $21.35 on over 2 million shares, but all eyes will be on the earnings report and guidance provided for the next quarter, as well as further out. Analysts expect earnings of 17 cents per share on revenues of $480.46 million. This is up over 38% from last year, when the company reported earnings of 5 cents per share on revenues of $347.27 million. The high estimates for revenues of $547.27 million, and the low estimate is $448 million. Shares trade at 9 times 2012 earnings, and are pricing in the fear that the industry may not be able to exist in its current form without major government subsidies. SunPower Corporation, together with its subsidiaries, designs, manufactures, and markets solar electric power technologies. The company operates in two segments, Components and Systems.