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.
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.