China Sunergy (CSUN) reported results this morning and while they missed slightly on the revenue number posting $117 million, they smashed EPS estimates with a profit surge of .33/share. That was nearly double the analyst estimate of .18/share and a new record for the company. It’s also more than double the EPS of last quarter and more than 10x the EPS from the year ago quarter.
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CEO Stephen Zhifang Cai commented on the quarter: “These results demonstrate the effectiveness of our turnaround strategy to institute greater operational efficiencies and production of more desirable solar products. Management’s continued perseverance and strategic focus allowed China Sunergy to maintain a higher ASP in the second quarter relative to the first, while still maintaining a stable cost base, resulting in a 19.8% gross margin, beating high end gross margin guidance. We are confident these improvements will continue into the second half of 2010. Given increased industry-wide demand and higher utilization rates, we will be in an advantageous position for enhancing our bottom-line. Additionally, we anticipate ongoing expansion into the downstream market as we continue to maximize shareholder value.”
Looking ahead the company sees Q3 shipments about inline with what they shipped last quarter (85 – 90MW) and expects full year shipments in the range of 320 – 350MW.
While CSUN has given up the morning gains, the stock has come a long way in recent weeks and probably just selling the news a bit. If it continues to pull back, I may initiate a position. Real nice quarter from CSUN.