Suntech Power Holdings Goes Red
Suntech Power Holdings (NYS: STP) reported earnings on May 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Suntech Power Holdings met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Suntech Power Holdings notched revenue of $409.5 million. The 20 analysts polled by S&P Capital IQ wanted to see revenue of $413.5 million on the same basis. GAAP-reported sales were 53% lower than the prior-year quarter's $877 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.74. The 17 earnings estimates compiled by S&P Capital IQ predicted -$0.48 per share. GAAP EPS were -$0.73 for Q1 versus $0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 0.6%, 1,840 basis points worse than the prior-year quarter. Operating margin was -29.1%, 3,990 basis points worse than the prior-year quarter. Net margin was -32.5%, 3,610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $521.4 million. On the bottom line, the average EPS estimate is -$0.44.
Next year's average estimate for revenue is $2.16 billion. The average EPS estimate is -$1.74.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Suntech Power Holdings is underperform, with an average price target of $3.36.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.