Suntech Power Holdings Co. Ltd. (NYSE: STP) is seeing shares take a hit this morning after the solar player filed to raise capital afterissuing earnings. The company’s profit slid to $1.8 million, or only $0.01 EPS. That is down from $46 million and $0.27 year-over-year. The good news is that Thomson Reuters was looking for a consensus estimates of almost -$0.06 EPS. Revenue was down more than 25% to $315.7 million compared to analyst expectations of about $350 million.
Suntech is not increasing production. It said that it plans to maintain photovoltaic cell production capacity at 1 gigawatt in 2009 until the situation gets better on the demand side of the equation.
As far as the filing, the company now plans to sell 20 million ADS shares, or 23 million shares if the overallotment option gets exercised. This would equate to roughly $300 million at today’s prices on a gross basis, and the market cap is listed as just under $2.5 billion as of yesterday’s close.
In early indications, shares look down 5.5% at $14.96 in early pre-market trading. Its 52-week range is $5.09 to $49.60.
JON C. OGG
MAY 21, 2009
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
