Suntech Revenue Up, 2011 Guidance Unchanged

NEW YORK (TheStreet) -- Chinese solar company Suntech Power (STP) easily beat the revenue consensus in the fourth quarter, at $945 million in sales versus the consensus at $843 million.

An eye-popping headline earnings per share beat of $2.02 versus consensus of 29 cents, on the other hand, isn't a comparison for investors to make. The company had $250 million non-cash value of project investments, as well as $50 million in equity income based on the fair value of assets tied to its recent acquisition of a solar wafer company.

Backing out the non-cash items, Hapoalim Securities analyst Aaron Chew estimates earnings of 38 cents on net income of $61 million, versus a consensus of 29 cents earnings.

Suntech shares were up 2% on Wednesday morning.

In addition, the Suntech 2011 guidance was exactly in line with guidance it provided in late 2010. Even though Suntech's revenue target of $3.4 billion to $3.6 billion is above the Street consensus, currently at $3.35 billion, Suntech Power had already guided the Street to a range of $3.4 billion to $3.6 billion.

Suntech gross margin guidance of 20% to 22% was in line with previous Suntech guidance also. Suntech guided to shipments being flat quarter over quarter for the first quarter of 2011.

Suntech earnings per share guidance for 2011 was also in line with its previous estimate of $1.40 to $1.60.

There were positive and negatives in the Suntech Power results within the top and bottom line. Suntech showed continued positive indications from its project business, Global Solar Fund, which had been a drag on Suntech shares until the third quarter 2010 when the company began booking revenue from the sales of modules to Global Solar Fund. In the fourth quarter, Suntech booked revenue of $53.6 million in the fourth quarter from GSF sales.

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