Needham & Company on SunPower (SPWRA): Impact of Italy Subsidy Changes Likely to Result in Further Estimate Reduction

Needham & Company maintains a 'Hold' on SunPower (NASDAQ: SPWRA).

Needham analyst says, "SunPower reported 1Q11 results inline with preannouncements, but suspended full year guidance due to ongoing reallocation of products from the Italy system business to other channels. We believe the weaker than consensus guidance for 2Q11 confirmed that the large Italian subsidy cut is impacting SunPower’s project business. Additionally, we continue to believe SunPower will face increased competition in high-efficiency solar modules over the next 2 years, driving down the price premium of its products and pressuring margins...Due to weaker 2Q revenue guidance and a lack of visibility, we cut our 2011 non-GAAP EPS to $1.58 and 2012 to $2.02, on slightly lower revenue estimates."

For more ratings news on SunPower click here and for the rating history of SunPower click here.

Shares of SunPower closed at $21.38 yesterday.

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