A-Power Energy (APWR) Reports Strong Results, Disappoints On Guidance

A-Power Energy (APWR) reported a big growth in the last quarter and beat analyst EPS estimates by a wide margin reporting a non GAAP Q4 EPS of $0.61 which was well ahead of analyst estimates of $0.41. Revenues were a bit shy of what analysts were looking for at $125.9 million.  Those are record numbers representing a 100% increase and 60% increase in EPS and revenue over the year ago quarter.  So why is  the stock taking another hit this morning?  It’s all about guidance and the company disappoints here.

The company sees revenue in the $380 million range for this year which isn’t bad and would be about a 20% increase over last year, but the Street was looking for $543 million.  They target $45 million in profit.  When you’re that far off the stock is going to take a hit and it’s down nearly 10% in premarket trading. 

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APWR CEO Jinxiang Lu didn’t offer any substance in his comments on the quarter, but here it is:

“We are very pleased with our fourth quarter results and continued delivery of annual growth featuring both our award-winning distribution power generation turn-key contract services and emerging wind turbine production. As China has demonstrated its economic resilience throughout the global financial crisis and renewed its growth momentum driven by further infrastructure build-out and rapid urbanization, power generation continues to stay in the lime light. Whether our DG micro-grid to complement often stressed state grids, or our large wind turbines to provide better economies of scale, A-Power focuses on bringing the best cost-effective solutions to the marketplace. While we are aligning our strategic positions in Japan and US, our goal remains intact by leveraging best-of-breed renewable technologies to benefit the vast end users and maximize our shareholders’ long-term value.”


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