Suntech shares down on good earnings

Chinese solar powerhouse Suntech (NYSE: STP) is down almost 6 per cent this morning despite beating its numbers in its latest quarterly earnings.

“We exceeded our initial fourth quarter output and revenue guidance for our core business as we increased our sales of PV modules, achieved sequential average selling price increases throughout 2006 and ramped up recently installed production lines ahead of schedule,” said Dr. Zhengrong Shi, Suntech’s Chairman and CEO. “Our operations are the healthiest they have been since our IPO.”

Driven by increased sales from its acquisition of MSK Corp., Suntech's fourth quarter 2006 total net revenues were up 144.8% year-over-year to $217.9 million. Fourth quarter 2006 production output was 55.3MW; full year 2006 production output was 160.1MW, representing 136.5% year-over-year growth. Annual capacity grew from 150MW at the end of 2005 to 270MW at the end of 2006, representing an increase of 80%.

Analysts polled by Thomson Financial had expected profit of 20 cents per share.

Suntech beat that handily—adjusted earnings rose to $35.5 million, or 23 cents per share, from $16.8 million, or 13 cents per share. Excluding MSK, adjusted net income was $37.8 million, or 24 cents per share.

Yet as of this morning, Suntech was trading at $36.98, down from its close of $39.30 on Friday.

Read all of the Cleantech Group's coverge of Suntech here.

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