China Sunergy (CSUN) is up about 10% this morning, adding to yesterday’s strong move above resistance.  The company beat analyst estimates by a wide margin and got back in the black by reporting a non GAAP EPS of .16/share on revenues of $104.3 million.  I’ll have to check on this when I have more time, but I believe that’s a record quarterly profit number for CSUN.  Analysts expected just .10/share on revenues of $91.55.  In the year ago quarter is when many of the solar companies bottomed out and CSUN is no exception.  The company nearly tripled revenues from the year ago quarter.  After the last earnings report, I called CSUN a 2nd rate solar company, but they showed me something this quarter.  They took a step backwards last quarter on the EPS side, but may be righting the ship.

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CEO Stephen Zhifang Cai commented on the quarter: “We are pleased to see that the strategic actions taken over the past several quarters have helped China Sunergy benefit from the improving demand environment, resulting in healthy gross margins and a return to net profitability.  Our improved operational efficiency and aggressive supply-chain management allowed us to reduce our cost base, and we implemented a comprehensive financial strategy against market volatility, including currency hedges, that shielded our cash flow during the quarter. In the coming months, we will integrate our solar cell manufacturing expertise with our new module production capabilities, to ensure we continue to offer industry leading solar products to our global customers.”

Looking ahead, the company expects next quarter shipments in the range of 80 – 90MW and 280 – 350MW for the full year.  The full year guidance is what they forecasted last quarter.