Why GT Advanced Technologies Shares Are Shining Bright

Why GT Advanced Technologies Shares Are Shining Bright

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of GT Advanced Technologies have soared over 13% today after the solar component maker reported second-quarter results after yesterday's close that trounced Wall Street's expectations on the bottom line.

So what: GTAT's earnings report showed flattish revenue, which increased only 1% to $168.3 million -- short of the $169.0 million top-line analysts had sought. However, GTAT's earnings of $0.15 per share came in well above the Street's $0.10 consensus estimate. The company didn't adjust its full-year guidance, which still stands at $500 million-$600 million for revenue and $0.25-$0.45 for EPS, but both of these ranges still reach beyond the analyst consensus. Wall Street had been looking for $527.1 million in revenue and $0.29 in EPS.

Now what: Solar stocks have been all the rage in 2013, and GTAT is no exception, as it's now nearly doubled since the start of the year. Bear in mind that GTAT is still unprofitable on a GAAP basis, but that looks to change soon, as only the first quarter of 2013 remains as a net negative on the company's books out of the four most recent quarters on record. The company's full-year projections peg its forward P/E in the range of 13-24, which is well within reason for a resurgent sector that still has a lot of growth potential left.

Want more news and updates? Add GT Advanced Technologies to your Watchlist now.

Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 2.19 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling "OPEC's Worst Nightmare". Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!

The article Why GT Advanced Technologies Shares Are Shining Bright originally appeared on Fool.com.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.