STP reports before open on thursday Aug 9th.
STP Q2 report is the last weak report before going into STRONG Q3...which started July 1.
STP was burdened with liquidating inventory from its Japanese subsidiary MSK @ loss...last 10% was on hand for Q2.
The above pressure on margin is a factor on the consensus estimate for Q2...so new news there.
Market & Analyst always care for "forward guidance"...which is going to be better than expected.
There is a chance that STP will increase its guidance for whole fiscal year in terms of "KW production & EPS"
STP remains the Sales leader in the entire Solar sector SPWR , FSLR & TSL are far behind so far.......
So why is STP not going into BLOWOFF mode like FSLR,TSL & SPWR......because market wanted to see a "strong guidance...which was not possible with inventory overhang from japanese subsidiary"........until June......which is done & overwith.
The folowing numbers are expected from STP :
Sales Q2 $287.69
YOY.........124.5%
EPS Q2.....23 Cents
YOY..........35.2%
EPS 07.....$1.03
YOY..........51.4%
EPS 08.....$1.59
YOY...........54.3%
PE 07........37.05
PE 08.........24
FSLR PE 08...79.40
SPWR PE 08..34.34
TSL PE 08.....15.13
STP Sales 08......$1.73 Billion
FSLR Sales 08....$675.33 Million
SPWR Sales 08...$1.14 Billion
TSL Sales 08......$697.35 Million
As you can clearly see that STP is the "undisputed Sales leader by FAR in solar sector"...
STP margin expansion is well UNDERWAY now......Next Q sequential Sales increase is + $31.31 million and eps projected for Q3 is 28 cents...a sequential increase of 21.7% q/q.. + 47.3% YOY.
STP should be a "strong perfomer from hereon in solar sector instead of being a laggard"
Please do your own due diligence as I own STP for my portfolio.
BLOG does not give buy or sell.
Saleem
1 comment:
That explains why STP hasn't dropped much. Watched this one and looking for a good oppo to short STP after a rally.
Who SOLD OUT a piece of national treasure vital to our survival, to Russians, dirt cheap? On paragraph 4.
Watch out SWC on monday for earnings release after hour. Crooks knocked down SWC from $16.47 to $8.56 in less than 3 months, for no good reason. Maybe they want to sell the remainder to Russians cheap?
Deeply oversold, I expect a blowout SWC quarterly earning, and from here SWC MUST have a dramatic reversal and a great rally on the good earnings. Don't let go of the opportunity!
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