Suntech Power Holdings Co. Ltd. Earnings: Swings to a Loss, Misses Estimates

Suntech Power Holdings Co. Ltd. (NYSE:STP) swung to a loss in the first quarter, missing analysts’ forecast. Suntech Power Holdings is a solar energy company. The company 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 Earnings Cheat Sheet for the First Quarter

Results: Reported a loss of $136.9 million (76 cents per diluted share) in the quarter. Suntech Power Holdings Co. Ltd. had a net income of $358 million or $1.83 per share in the year-earlier quarter.

Revenue: Fell 33.4% to $629 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Suntech Power Holdings Co. Ltd. fell short of the mean analyst estimate of a loss of 32 cents per share. Analysts were expecting revenue of $622.4 million.

Quoting Management: “In the fourth quarter, our customers continued to demonstrate their preference to work with global suppliers that are dedicated to delivering high performance and superior quality solar panels,” said Dr. Zhengrong Shi, Suntech’s chairman and CEO. “With strong demand ahead of subsidy reductions in multiple markets, we again exceeded our shipment guidance and met our gross profit target for the fourth quarter of 2011. In 2011, we continued to invest in our customer service capabilities and built on our foundation as a leading global brand. This was recognized in the EuPD’s independent survey amongst end-customers in Germany, France and Italy that selected Suntech as the first China-based company to receive the Top PV Brand award. We are committed to driving further product and service innovation in the industry to ensure we continue to deliver the best value proposition to our customers.”

Key Stats:

The company has missed analyst estiamtes for four quarters in a row. It fell short by 34 cents in the fourth quarter of the last fiscal year, by 35 cents in the third quarter of the last fiscal year, and by 18 cents in the second quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. The average estimate for the second quarter is now at a loss of 29 cents per share, up from a loss of 30 cents. In the past thirty days, the average estimate for the fiscal year has reached a loss of $2.19 per share, up from a loss of $2.26.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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