U.S. solar company SunPower Corp (SPWR.O) on Wednesday backed its financial forecasts for this year and next, citing strong residential demand for both panels and battery storage and support for renewable energy from the administration of President Joe Biden.
The company backed the outlook despite supply constraints on some electronics components and higher freight costs that are hitting industries from solar to autos. SunPower said it was confident that it would have access to the components it needs this year to meet its growth targets.
The San Jose, California company, which is majority owned by France’s Total SE (TOTF.PA), is in the midst of transforming itself from a solar panel producer into a financing and installation company focused on the residential and commercial U.S. markets. It spun off its solar manufacturing operations into a new company, Maxeon Solar Tehnologies (MAXN.O), last year.
As part of that transition, SunPower recently hired former Amazon Inc executive Peter Faricy as its chief executive. His mandate is to improve the company’s customer experience and marketing efforts as rooftop solar adoption increases and integrates with battery storage and electric vehicles.
SunPower said it still expects revenue growth of 35% for fiscal 2021 and an increase of 40% in adjusted earnings before interest, taxes, depreciation and amortization in fiscal 2022.
On a conference call with analysts, Faricy said SunPower would benefit from several policies proposed by the Biden administration’s infrastructure plan, including a 10-year extension on solar tax credits, a tax credit for energy storage and a goal to run federal facilities on renewable power.
“This is a pivotal time for all of us on the policy front,” Faricy said. “There’s never been a better opportunity for this industry to take advantage of the momentum we have here.”
SunPower shares were up 36 cents, or 1.6%, at $23.36 in afternoon trade on the Nasdaq.
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