Suntech Power (STP) 3rd Quarter Results In, Profits Increase But Company Still Performing Below Expectations

Suntech Power reported its 3rd quarter results this morning. Although the company’s results do show continued growth, they were well below what analysts had expected to see. For example, Suntech reported revenues of $594.4 million. Although this was an increase of 53.7% from last year, it was still below analysts predictions of $571.7 million. Earnings came in at .35/share, excluding one-time items. Analysts had expected to see earnings of $.42/share.

Due to the weakening of the euro compared to the US dollar and the tight credit market situation, Suntech is also lowering its guidance for the 4th quarter and the fiscal year as a whole. For the 4th quarter, the company now expects revenues of $345-360 million instead of $614.78 million. For the 2008 fiscal year, they now expect revenues of $1.85-1.87 billion instead of $2.05-2.11 billion. Suntech has also lowered its photovoltaic product shipment target for 2008. Instead of 550 MW, the target has been reduced to 490 MW.

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