Piper Jaffray Not Surprised To See Power-One Beat 3Q10 Guidance
October 29, 2010 8:53
In a report released this morning, Piper Jaffray said that it is not surprised to see Power-One, Inc. (NASDAQ: PWER) beat its 3Q10 guidance as demand in all parts of the solar value chain has been strong.
“The Company has consistently exceeded expectations in 2010,” Piper Jaffray writes. “However, we are looking at 2011 and concerns persist. We look for pricing pressure as component shortages ease and competition increases. Management now estimates 8-10% industry wide pricing declines in 2011. Consequently, margins will be squeezed for Power-One, retreating from this quarter's high of 41%.
“Furthermore, the Company looks for a seasonal dip in 1Q11 revenues, whereas competitor Satcon is not, a sign that competition is heating up.”