Suntech: Upped Guidance, Increasing Capacity $STP
Green Stocks Central
Shares of Suntech (STP) are continuing to build on last week’sstrength after the company increased guidance for this year and next. They now expect 2010 revenue of $2.78 – $2.83 billion which is ahead ofthe Street estimate of $2.7 billion. For 2011, Suntech expects to shipat least 2.2GW of solar products and generate revenues of $3.4 billionto $3.6 billion. The Street was estimating $3 billion. EPS is estimatedto be $1.40 – $1.60 for next year.
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The company also announced a joint venture with Wuxi IndustrialDevelopment Group & Wuxi New District E&D Group to own andoperate a solar production plant. Suntech will have 40% ownership andinvest $60 million.
Shares of STP are up another 6% today and pushing back above the 50day moving average, but it’s going to take time for this stock toultimately put in a long term bottom and has been making a series oflower lows for months. Today’s guidance is a good start and likelyindicates that a long term bottom is very close.
Suntech Power (STP) Up Again On Upped Guidance, Increasing Capacity
