SunPower Corp on Tuesday reported a smaller-than-expected quarterly net loss, citing strong demand for its solar panels and projects, and said it would sell its stake in the 8point3 Energy Partners LP partnership. The company also lowered the high end of its revenue view for the year due to the timing of Mexican projects. SunPower’s stock slid more than 11 percent in extended trade following the announcement. A global glut of solar panels has pushed prices down substantially over the last year, harming profit margins for manufacturers and developers like SunPower. The company has been working to cut costs and preserve cash as it navigates the weak pricing environment. The U.S. solar company’s second-quarter net loss widened to $93.8 million, or 67 cents per share, from a net loss of $70 million, or 51 cents per share, a year ago.
Excluding one-time items, the company posted a loss of 35 cents per share, narrower than the loss of 44 cents per share Wall Street analysts had been expecting, according to Thomson Reuters I/B/E/S. For 2017, SunPower expects net revenue of $1.9 billion to $2.1 billion, narrower than the prior view of $1.8 billion to $2.3 billion. SunPower’s announcement that it planned to sell its stake in 8point3 follows a similar move by its partner in the venture, First Solar Inc, earlier this year. At the time, SunPower had said it was exploring alternatives for 8point3, a publicly traded entity that houses solar projects with long-term utility contracts that were built by the two companies. Proceeds from the sale will allow SunPower to pay down debt and retire its 2018 convertible bonds, the company said. First Solar has yet to sell its share in 8point3. SunPower is majority-owned by French oil company Total SA . Its stock slid to $10.07 in extended trading after closing at $11.39 on the Nasdaq.