Suntech Power Holdings
The 10-second takeaway
For the quarter ended March 31 (Q1), Suntech Power Holdings met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Suntech Power Holdings notched revenue of $409.5 million. The 20 analysts polled by S&P Capital IQ wanted to see revenue of $413.5 million on the same basis. GAAP-reported sales were 53% lower than the prior-year quarter's $877 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.74. The 17 earnings estimates compiled by S&P Capital IQ predicted -$0.48 per share. GAAP EPS were -$0.73 for Q1 versus $0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 0.6%, 1,840 basis points worse than the prior-year quarter. Operating margin was -29.1%, 3,990 basis points worse than the prior-year quarter. Net margin was -32.5%, 3,610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $521.4 million. On the bottom line, the average EPS estimate is -$0.44.
Next year's average estimate for revenue is $2.16 billion. The average EPS estimate is -$1.74.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Suntech Power Holdings is underperform, with an average price target of $3.36.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.