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Suntech Power earnings nearly double, shares rally
Solar panel maker Suntech Power Holdings Co Ltd (STP.N: Quote, Profile , Research) said on Thursday quarterly earnings nearly doubled, beating analysts' estimates and driving its shares up more than 10 percent.
Third-quarter net income jumped to $53.3 million, or 32 cents a share, from $28.7 million, or 19 cents per share, a year earlier.
Net revenue more than doubled to $386.7 million from $163 million. Gross margins in the company's core business rose 24.4 percent.
Excluding items such as stock-based compensation, Suntech said it earned 36 cents per share.
Analysts, most of whom included stock-based compensation in their calculations, had expected profit of 28 cents per share. Including stock-based compensation and excluding restructuring and other expenses, Reuters Estimates said the company earned 32 cents per share.
Suntech posted a quarterly gross margin of 24 percent, versus German rival Q-Cells' (QCEG.DE: Quote, Profile , Research) third-quarter gross margin of 37 percent.
That difference was because, as a newer entrant to the sector, Suntech was paying higher prices for the silicon raw material used in solar cells to convert sunlight into electricity.
But Chief Executive Dr. Zhengrong Shi told Reuters in an interview those margins would rise in the coming years.
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=hotStocksNewsUS&storyID=2007-11-15T162944Z_01_N15269907_RTRUKOC_0_US-SUNTECH-RESULTS.xml
Solar panel maker Suntech Power Holdings Co Ltd (STP.N: Quote, Profile , Research) said on Thursday quarterly earnings nearly doubled, beating analysts' estimates and driving its shares up more than 10 percent.
Third-quarter net income jumped to $53.3 million, or 32 cents a share, from $28.7 million, or 19 cents per share, a year earlier.
Net revenue more than doubled to $386.7 million from $163 million. Gross margins in the company's core business rose 24.4 percent.
Excluding items such as stock-based compensation, Suntech said it earned 36 cents per share.
Analysts, most of whom included stock-based compensation in their calculations, had expected profit of 28 cents per share. Including stock-based compensation and excluding restructuring and other expenses, Reuters Estimates said the company earned 32 cents per share.
Suntech posted a quarterly gross margin of 24 percent, versus German rival Q-Cells' (QCEG.DE: Quote, Profile , Research) third-quarter gross margin of 37 percent.
That difference was because, as a newer entrant to the sector, Suntech was paying higher prices for the silicon raw material used in solar cells to convert sunlight into electricity.
But Chief Executive Dr. Zhengrong Shi told Reuters in an interview those margins would rise in the coming years.
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=hotStocksNewsUS&storyID=2007-11-15T162944Z_01_N15269907_RTRUKOC_0_US-SUNTECH-RESULTS.xml
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