Suntech Shares Plunge on Shockingly Weak Q4 Outlook
Suntech (STP) shares are trading dramatically lower–and dragging down the rest of the already battered solar sector–on an extremely weak outlook for Q4 results.
For Q3, the company posted revenue of $594.4 million and non-GAAP profits of 36 cents a share. That beat the Street estimate of $571.7 million at the top line, but fell short of Street estimate of 42 cents at the bottom line.
But what really matters here is the outlook. For Q4, the company now sees revenue of $345 million to $360 million, dramatically below the Street consensus of $614.78 million. Suntech said it expects to be “marginally” profitable or break even in the quarter. The Street had expected 43 cents.
