China Sunergy (CSUN) reported results this morning and while they missed slightly on the revenue number posting $117million, they smashed EPS estimates with a profit surge of .33/share. That was nearly double the analyst estimate of .18/share and a newrecord for the company. It’s also more than double the EPS of lastquarter and more than 10x the EPS from the year ago quarter.
CEO Stephen Zhifang Cai commented on the quarter: “These results demonstrate the effectiveness of our turnaround strategy to institutegreater operational efficiencies and production of more desirable solarproducts. Management’s continued perseverance and strategic focusallowed China Sunergy to maintain a higher ASP in the second quarterrelative to the first, while still maintaining a stable cost base,resulting in a 19.8% gross margin, beating high end gross marginguidance. We are confident these improvements will continue into thesecond half of 2010. Given increased industry-wide demand and higherutilization rates, we will be in an advantageous position for enhancingour bottom-line. Additionally, we anticipate ongoing expansion into thedownstream market as we continue to maximize shareholder value.”
Looking ahead the company sees Q3 shipments about inline withwhat they shipped last quarter (85 – 90MW) and expects full yearshipments in the range of 320 – 350MW.
While CSUN has given up the morning gains, the stock has come along way in recent weeks and probably just selling the news a bit. Ifit continues to pull back, I may initiate a position. Real nice quarter from CSUN.