Suntech Power (STP) Up Again On Upped Guidance, Increasing Capacity

Shares of Suntech (STP) are continuing to build on last week’s strength after the company increased guidance for this year and next.  They now expect 2010 revenue of $2.78 – $2.83 billion which is ahead of the Street estimate of $2.7 billion. For 2011, Suntech expects to ship at least 2.2GW of solar products and generate revenues of $3.4 billion to $3.6 billion. The Street was estimating $3 billion. EPS is estimated to be $1.40 – $1.60 for next year.

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The company also announced a joint venture with Wuxi Industrial Development Group & Wuxi New District E&D Group to own and operate a solar production plant.  Suntech will have 40% ownership and invest $60 million.

Shares of STP are up another 6% today and pushing back above the 50 day moving average, but it’s going to take time for this stock to ultimately put in a long term bottom and has been making a series of lower lows for months.  Today’s guidance is a good start and likely indicates that a long term bottom is very close.

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