A-Power Energy (APWR) Misses Wall St Estimates, But Surging After Raising Guidance

A-Power Energy (APWR) missed analyst estimates on both the EPS and revenue side this morning, but is surging about 10% in pre-market trading after raising guidance for this year.  The company reported a non GAAP Q1 EPS of $0.05, versus the analyst estimate of $0.22. Revenue for the quarter was $67.30 million, which compares to the estimate of $82.05 million.  The non GAAP EPS number excludes significant one time gains during the quarter which include a $13.6 million gain from an investment in Evatech which it acquired and a $14.2 million increase in the fair value of outstanding warrants.  So, while revenues more than doubled over the year ago quarter, not real impressive on the EPS side when you exclude those one time gains.

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However, this is a stock that has been destroyed, so traders are looking for any bright spot to bid it up.  They got it when the company raised full year revenue guidance from $380 million to $500 million and net income guidance from $45 to $60 million.

APWR CEO Jinxiang Lu commented on its business conditions: “Although the first quarter is typically a slow season in our DG activities in most parts of China due to the winter weather condition, we set new records for both revenue and net income growth in first quarter of 2010. Our geographic diversification into southern China and international projects are contributing more DG revenues. Our wind turbine business continues to gain traction and we remain confident in the market outlook, as our larger turbines are receiving favorable consideration in China, and the outlook for future turbine exports also appears promising. With more components arriving and our production expanding, we are continuing to move forward on all facets of our wind turbine business, both domestically and internationally. On the financial side, we continued to work to strengthen our balance sheet and manage our cash flow to prepare ourselves for further expansion during 2010.”

Technically, APWR is looking close to bottoming out in my opinion, especially if it can hold the pre-market gains throughout the day.  Shares are up 12% in pre-market trading.

One thought on “A-Power Energy (APWR) Misses Wall St Estimates, But Surging After Raising Guidance”

  1. when will folks listen to my FIVE For FIVE perfect REVENUE GUIDANCE since I am the only one covering APWR who is even close!!! The paid analysts have hundreds of stocks to cover and have proven they have NOT a clue of how to value nor estimate APWR in earnings nor revenues!

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