Suntech Power (STP) is out this morning posting preliminary results for Q4 2011 and the results are considerably better than expected. The stock soared at the open up around 20%, but has given much of that back and is currently up around 12% on heavy volume.
The company says it has exceeded previous guidance and will post revenues in the $610 – $630 million range with full year shipments above the previous guidance of 2GW at 2.09GW. The company more than doubled its accounts receivable and inventory reduction goal of $200 million with a $450 million reduction.
Dr. Zhengrong Shi, Suntech’s Chairman and CEO, said, “Our sales and operations teams both performed well in the fourth quarter, enabling us to achieve key goals and improvements across our business. We exceeded shipment guidance and improved our cash position through ongoing management of accounts receivable and inventory. We also completed the impairment assessment for the third quarter of 2011. The charges that we incurred were all non-cash and will not impact our operations moving forward. We will continue to implement the initiatives necessary to maintain our position as the leading supplier of solar panels.”
Suntech will post official earnings results on March 8th ahead of the bell.
Technically, shares of STP continue to look very good and I continue to hold the position I added back in November when I believed solar stocks were showing signs of bottoming out. I may add another position soon.