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What: Suntech Power
So what: Revenue was up 57% to $743.7 million for the third quarter, better than Wall Street's expectation of $714 million, but margins have been squeezed by lower module prices hurting the bottom line. Gross margin fell to 16.4%, leading earnings to come in at $0.18 per share, below expectations of $0.23 per share.
Now what: The other news of the day is Suntech Power announcing the purchase of 375 megawatts of wafer- manufacturing capacity for $127 million. Suntech's weak quarter has helped push solar stocks down again today after a rough day yesterday. Considering the weakness in the sector, I'm going to sit out the move today, but in the long run, Suntech is making moves that should improve its operations.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his Motley Fool CAPS picks at TMFFlushDraw.
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