China Sunergy (CSUN) is up about 10% this morning, adding toyesterday’s strong move above resistance.
The company beat analystestimates by a wide margin and got back in the black by reporting a nonGAAP EPS of .16/share on revenues of $104.3 million. I’ll have to check on this when I have more time, but I believe that’s a record quarterlyprofit number for CSUN. Analysts expected just .10/share on revenues of $91.55. In the year ago quarter is when many of the solar companiesbottomed out and CSUN is no exception. The company nearly tripledrevenues from the year ago quarter. After the last earnings report, Icalled CSUN a 2nd rate solar company, but they showed me something thisquarter. They took a step backwards last quarter on the EPS side, butmay be righting the ship.
CEO Stephen Zhifang Cai commented on the quarter: “We are pleased tosee that the strategic actions taken over the past several quarters have helped China Sunergy benefit from the improving demand environment,resulting in healthy gross margins and a return to net profitability. Our improved operational efficiency and aggressive supply-chainmanagement allowed us to reduce our cost base, and we implemented acomprehensive financial strategy against market volatility, includingcurrency hedges, that shielded our cash flow during the quarter. In thecoming months, we will integrate our solar cell manufacturing expertisewith our new module production capabilities, to ensure we continue tooffer industry leading solar products to our global customers.”
Looking ahead, the company expects next quarter shipments in therange of 80 – 90MW and 280 – 350MW for the full year. The full yearguidance is what they forecasted last quarter.