Suntech Power (STP) reported a Q2 non GAAP EPS of $0.03 (taking out provisions and restructuring charges related to thin film and Shunda, which is below the analyst estimate of $0.10 (correction – that is inline with analyst estimate of .03). Revenue for the quarter was $625.1 million, which compares to the estimate of $595.39 million.  While the EPS number was 50% lower than the year ago quarter, revenues nearly doubled over the year ago quarter.  The company took another big Euro hit, taking a $37 million loss.  While other solar companies are doing a decent job of hedging Euro exposure, Suntech hasn’t been as successful.

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On the bright side, the company is raising guidance due to strong demand, raising the 2010 shipment guidance from 1.3GW to 1.5GW.  They expected shipments to increase 15 – 20% this quarter over last.  In order to meet growing demand, they target capacity expansion to 1.8MW by the end of the year.

CEO of Suntech commented:  “Despite successful sales expansion and strong execution during the second quarter, our financial results bear the significant impact of our Shanghai facility restructuring and Shunda Holdings investment impairments. These were necessary adjustments to make, and they have no impact on our core manufacturing operations. Now that they are behind us, we are in a better position to address the growth we are expecting in our core business.”

Shares of STP have been on a path to retest the June lows at 8.43, but could see a relief rally following this earnings report since the big write off related to thin film operations and Shunda have likely been priced in.  Shares are trading fractionally higher in pre-market trading.