STP Raises 2008 Revenue Outlook

Source: http://www.zacks.com/stock/news/14331/STP+Raises+2008+Revenue+Outlook
Posted on Wednesday, August 20th, 2008 | In Stocks to Watch

Contributed by: James Giaquinto (http://www.zacks.com/) -

Earlier today, Suntech Power Holdings Co. Ltd. (STP) said a healthy demand environment and smooth execution led to a 51.3% jump in second-quarter revenues. The solar cell maker also raised its 2008 revenue guidance due to the same factors.

Shares had surged more than 14% by Wednesday afternoon.

Also in the quarter, earnings per ADS, excluding items, reached 41 cents, compared to the consensus at 32 cents. STP stated that it is fully booked for the second half and expects these excellent demand conditions to continue through 2009.

With a favorable environment in the background, STP felt comfortable enough to raise its revenue outlook for 2008 to between $2.05 billion and $2.15 billion. Previously, the company expected $1.9 billion to $2.1 billion. It also raised its photovoltaic (PV) product shipment target for the year.

Suntech is currently a Zacks #3 Rank company with stagnant earnings estimates for this year. However, underscoring the potential for STP specifically and alternative energy companies in general, analysts currently expect next years EPS to be approximately 63% better than this years. In the interim, though, STPs solid second-quarter performance might be enough to convince some of the 15 covering analysts to give its earnings estimates a boost.

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