Skip to main content

Market Overview

Sunpower CFO: Residential Demand Has Never Been Stronger

Share:
Sunpower CFO: Residential Demand Has Never Been Stronger
  • SunPower Corporation (NASDAQ: SPWR)'s CFO, Chuck Boynton, spoke at the Credit Suisse 19th Annual Technology, Media and Telecom Conference on Wednesday.
  • Boynton said the company has set an ambitious goal of tripling its volume and more than doubling its earnings.
  • The executive also highlighted his optimism for 8Point3 Energy Partners LP (NASDAQ: CAFD).

Shares of SunPower, a provider of solar technology to residential, commercial and utility customers, saw its shares gain less than 4 percent since the start of 2015. By comparison, the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ: QQQ) returned more than 10 percent over the same period.

Sunpower's Chief Financial Officer Chuck Boynton spoke at Credit Suisse's 19th Annual Technology, Media and Telecom Conference on Wednesday and discussed the company's vision and outlook.

Related Link: 8 Ways To Add Solar To Your Portfolio

Boynton said that he is "really excited" about the company's future and have set an "ambitious goal" of tripling its volume and more than doubling its earnings. In fact, the executive noted that residential demand has never been stronger.

Boynton highlighted a new product called Performance Series which "can be equal or lower cost" compared to a Tier 1 Chinese product.

Optimistic For 8point3

Boynton also discussed his optimism for 8point3, a limited partnership the company formed with First Solar to own, operate and acquire solar energy generation products.

According to Boynton, 8point3 and other YieldCos are buyers in the current market. He added that 8point3 will "differentiate itself over time" as the market "normalizes." Meanwhile, costs were "frothy" six months ago and have "overcorrected."

Boynton noted that 30 years ago, MLPs were just a $10 billion industry and today it is nearly a $1 trillion market. The same growth prospects can be seen in the solar sector because the market is "so deep." The executive expanded that total volume for solar projects is up to $1.7 trillion (built and financed) in OCED countries over the next 10 years.

Finally, Boynton said that he expects module cost reductions to be "significant" over the next five years and also envisions "very significant reductions" in overall had costs.

 

Related Articles (SPWR)

View Comments and Join the Discussion!

Posted-In: Chuck Boynton Credit Suisse Annual Technology Media And Telecom Conference MLP Solar Power YieldCoNews Events Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com