Suntech Power Holdings (NYSE: STP) shares climbed on the company�s strong fourth-quarter results, exceeding its shipment and revenue targets.
The company reported net revenues for the fourth quarter of $945.1 million, an increase of 27.1% from $743.7 million in the previous quarter and an increase of 61.9% from $583.6 million in the comparable period last year. The net revenues from investee companies of GSF were $53.6 million. The income from operations for the fourth quarter was $90.2 million, an increase of 44.2% compared to $62.6 million in the third quarter of 2010. The net income increased to $383.4 million or $2.02 per diluted share for the fourth quarter, as compared to net income of $33.1 million or $0.18 per share for the third quarter of 2010.
For the full year, the company reported net revenues of $2,901.9 million as compared with $1,693.3 million in 2009. �The year-over-year increase was primarily due to a 124.5% increase in shipments of PV products, which was offset by a decline in the average selling price of PV products. The consolidated gross profit was $503.8 million and gross margin was 17.4% for the year. The net income increased to $262.3 million or $1.44 per diluted share for the year, as compared to net income of $85.6 million or $0.50 per diluted share for 2009. The company incurred capital expenditures, primarily related to the construction of production facilities in Shanghai and other infrastructure projects to support expansion of Pluto capacity, totaled $335.6 million.
The company expects PV shipments to be relatively flat for the first quarter of 2011 as compared with the fourth quarter of 2010. The consolidated gross margin in the first quarter of 2011 is expected to increase to approximately 20%, due to the integration of wafer manufacturing capacity,
The company expects to ship at least 2.2GW of solar products and generate revenues of $3.4 billion to $3.6 billion for full year 2011, subject to changes in foreign exchange rates. The consolidated gross margin for the full year 2011 is expected to be approximately 20% to 22%. The company expects to achieve 2.4GW of installed cell and module production capacity by the end of 2011. Also expects to achieve 1.2GW of installed wafer capacity by the end of 2011.
Suntech Power Holdings stock is currently trading at $9.10, gaining 1.11% from the previous close. Suntech Power Holdings shares touched the high of $9.35 and lowest price in today�s session is $8.97.
The company stock has traded in the range of $7.05 and $15.55 during the past 52 weeks. The company�s market cap is $1.63 billion.
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