Yingli Green Energy (YGE) Beats Estimates, Notes Pick Up In German Demand, But Shares Slump

Yingli Green Energy (YGE) has posted better than expected results ahead of the bell this morning.  The company is back to profitable on a non GAAP basis, reporting .14/share vs the estimates for .04/share.  Revenues also topped expectations at $219.5 million vs the Wall St estimate of $213.5 million.  That’s about in line with the quarter over quarter revenue decrease of last quarter, but sequentially the revenues are much better, which is a trend we’ve seen in many of the solar names.

The CEO commented on the better than expected quarter:

“The primary factors driving these numbers were the improved global PV project financing environment and pickup in demand for PV products in existing solar markets, especially Germany. This performance was also a result of our efforts to diversify our customer portfolio, enhance our sales channels and strengthen our customer service in key emerging solar markets such as the U.S., China, Italy, South Korea and France.”

Looking ahead, the company is reaffirming its PV module shipment target for the full year 09 at 450 – 500MW and estimates gross margins in the range of 18 -20%.

It looks like the report isn’t being received well in premarket trading.  The stock is down about 10% and the overall weakness in the China market isn’t helping.

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