Friday's Biggest Losers: SunPower and Palm (SPWRA, PALM)

SunPower Corporation (NASDAQ:SPWRA) shares are down 14% and Palm Inc. (NASDAQ:PALM) is falling harder down 26%.  TGIF for investors as the market takes a nasty turn and the future looks bleek for Palm shareholders.

SUNPOWER WEAK GUIDANCE
SunPower Corporation (NASDAQ:SPWRA) has completed its accounting investigation and restated its financials for full year 2008 and Q1 2009 through Q3 2009. Although SunPower posted higher-than-expected revenues for Q4, its EPS fell short due to “costs associated with the SunRay acquisition and the accounting investigation,” the analysts say.

Robert Baird reiteratd their "outperform" rating on SunPower Corp. (SPWRA) and set a new target price of $34.

SunPower Corp. sees Q1 adj-EPS of about $0.05, versus the consensus of $0.34, on sales of $330-$350 million. The Street is looking for sales of $427.27 million. SPWRA sees FY10 adj-EPS of $1.25-$1.65, vs. the consensus of $1.78. Sees FY10 sales of $2-$2.25 billion, vs. the consensus of $2.06 billion.

THE END OF PALM
Palm said it shipped 960,000 smart phones in the latest quarter, but sold only 408,000 devices.  They are fading, and today its shares are down 20% and hit a new 52-week low of $4.55.  

Palm just reported that its revenue rose to $349.9 million in its fiscal third quarter ended Feb. 28, from $90.6 million a year ago. The company's net loss narrowed to $22 million, or 13 cents a share, compared with a loss of $98 million, or 89 cents a share, a year earlier.

Still, Palm warned that revenue in the current quarter ending in late May would fall to less than $150 million. Although that would be up from $113.2 million a year earlier, it is far below the $305.8 million projected by analysts and tallied by Thomson Reuters.

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