The Ratings Game: SunPower’s shock profit warning makes for unusually tense earnings call

The earnings conference call, a ritual for Wall Street equity analysts every quarter, is typically a pretty dull affair.

Analysts ask executives for “color” on their earnings, looking for anything that helps them better understand a company’s financials. They regularly flatter executives — many questions begin with a ‘great quarter, guys!” — and executives tend to be guarded in their response.

All that changed late Tuesday, when analysts joined the SunPower Corp. SPWR, -29.77% call following a major profit warning that took analysts and investors by surprise. The company said it now expects a loss of as much as $175 million for 2016, a sharp turnaround from an earlier outlook of a profit of up to $50 million.

>>> Original Source <<<