Suntech Power Holdings Co., Ltd. Earnings: Revenue Grows By Double-Digits

Suntech Power Holdings Co., Ltd. (NYSE:STP) reported its results for the second quarter. Suntech Power Holdings Co., Ltd. is a solar energy company, which designs, develops, manufactures and markets a number of PV cells and modules, including a range of value-added building-integrated photovoltaics products.

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Suntech Power Holdings Co Earnings Cheat Sheet for the Second Quarter

Results: Loss widened to $259.1 million ($1.44 per diluted share) from $174.9 million (loss of 97 cents per share) in the same quarter a year earlier.

Revenue: Rose 32.9% to $830.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: STP reported an adjusted net loss of 19 cents per share. By that measure, the company fell short of mean estimate of 16 cents per share. It beat the average revenue estimate of $799.7 million.

Quoting Management: “In a competitive market environment, our core operations performed well as customers continued to demonstrate their preference for Suntech’s superior quality and highly bankable solar products,” said Dr. Shi, Suntech’s chairman and CEO. “With 48% shipment growth year-over-year, we achieved our shipment guidance and continued to improve our position in the Americas and emerging solar markets. Our pipeline to supply bankable utility-scale solar projects continued to build during the quarter, most notably with our 190MW partnership with Solarhybrid in Europe, and a recently-inked 200MW agreement for multiple projects in North America. We are also gaining traction in China’s utility solar market, which has been stimulated by the introduction of a national feed-in-tariff.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 61.1%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 94.8% from the year earlier quarter.

STP’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $31.9 million in the first quarter, a profit of $236.9 million in the fourth quarter of the last fiscal year and $33.1 million in the third of the last fiscal year.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 18 cents with net income of 17 cents versus a mean estimate of net income of 35 cents per share.

Competitors to Watch: Trina Solar Limited (NYSE:TSL), Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE), First Solar, Inc. (NASDAQ:FSLR), JA Solar Hldgs. Co., Ltd. (NASDAQ:JASO), SunPower Corporation (NASDAQ:SPWRA), LDK Solar Co., Ltd (NYSE:LDK), China Sunergy Co., Ltd. (NASDAQ:CSUN), JinkoSolar Holding Co., Ltd. (NYSE:JKS).

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(Source: Xignite Financials)