SunEdison stock (SUNE) is down 2.4% in morning trading after a Q1 loss that was worse than analyst expectations.
SUNE’s net loss was at $613.6 million ($2.31 per share) compared to $89.4 million (40 cents per share) this time time last year.
The loss was 25 cents per share while Thomson Reuters’ polled analysts expected it at 17 cents per share.
Overall adjusted sales were up 34% to $577.6 million, with analysts’ estimate higher at $593.9 million.
The company blamed its losses on poor solar panel prices coupled with higher costs in maintaining its solar power plants.
Via Reuters:
SunEdison plans to create a public company that will own and operate the plants, but in the process is sacrificing near-term revenue for long-term profit.
The new company will hold projects that have long-term agreements with power producers, a move SunEdison says will guarantee stable cash flow and lower the cost of financing new projects.
The Street points out that while SunEdison hasn’t been having a good streak, Wall Street sees a slightly brighter future.
During the past fiscal year, SUNEDISON INC reported poor results of -$2.39 versus -$0.65 in the prior year. This year, the market expects an improvement in earnings (-$0.18 versus -$2.39).
SunEdison develops, manufactures, and sells silicon wafers to the semiconductor industry.
