$CSUN Smashies Earnings, Narrows Guidance
Green Stocks Central
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.
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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.
China Sunergy (CSUN) Beats With A Record Profit, Narrows Guidance To Higher End Of Range
