Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



GT Solar Is Still on Fire

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

You can nitpick all you want, as the market appears to be doing, but compared to almost any company, GT Solar (Nasdaq: SOLR  ) reported outstanding earnings last night. The equipment maker's mix change may leave some lumpy results in the future, but it looks like smooth sailing for now.

In the fiscal first quarter, revenue grew 71% over last year to $231 million, gross margin improved to 49%, and to top it off, earnings per share grew 273% to $0.41. Maybe most impressive is the company's $2.3 billion backlog, which includes $952.5 million from the sapphire business that had very little revenue this quarter.

If you wanted to focus on one negative, that would be a slowing of the photovoltaic and polysilicon business. They're both maintaining demand at near historic levels for now, but the question is, will that demand fall off as customers like LDK Solar (NYSE: LDK  ) and Trina Solar (NYSE: TSL  ) slow expansion?

Even if the photovoltaic and polysilicon businesses fall off next year as some analysts predict, GT Solar's growing diversification will weather the storm.

Cheaper by the day
One of the reasons I called GT Solar one of the best cleantech stocks in both June and July was its incredibly low valuation. Based on the company's reiterated guidance of $1.55 to $1.85 in earnings per share for fiscal 2012, shares are trading between a 6.8 and 8.1 forward earnings multiple. Seriously?

Combine that with the fact that GT Solar has a $1.6 billion market cap, $473 million in cash, and just $95.6 million in long-term debt. Even if solar demand slows in 2012, GT Solar has an up-and-coming sapphire business and a ton of cash to weather the storm. It seems like a very cheap stock to this Fool.

It's all in a name
GT Solar also announced it was tired of being associated only with the solar sector and will now be known as GT Advanced Technologies. The company's ticker will also be changed to GTAT on Monday, August 8, so make sure to make the change in you newsfeeds and on My Watchlist.

Fool contributor Travis Hoium has sold put option in GT Solar. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 04, 2011, at 11:47 PM, sailrick wrote:

    "If you wanted to focus on one negative, that would be a slowing of the photovoltaic and polysilicon business"

    But that would only be a blip in the long term view.

    Solar is really just getting started. LED lighting too for that matter.

    I share your enthusiasm for this stock. Playing a key role in two fast emerging technologies is a big plus for them. I am not holding it at present because I had bought SOLR at around $5 and sold at around $15 not long ago. But it's a long term buy for sure.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1533529, ~/Articles/ArticleHandler.aspx, 10/27/2016 11:01:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,192.42 -6.91 -0.04%
S&P 500 2,136.40 -3.03 -0.14%
NASD 5,236.86 -13.41 -0.26%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
GTATQ $0.00 Down +0.00 +0.00%
GT Advanced Techno… CAPS Rating: ***
LDKYQ $0.02 Down +0.00 +0.00%
LDK Solar Co., Ltd… CAPS Rating: *
TSL $10.35 Down -0.02 -0.14%
Trina Solar CAPS Rating: **