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Energy

Suntech Power Raising Cash After Earnings (STP)

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By Douglas A. McIntyre Updated Published
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Solar Panel PicSuntech 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

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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