Friday May 23, 5:12 pm ET
Adjusted earnings roughly doubled to 35 cents per ADS on revenue of $434.5 million. Analysts were expecting, on average a profit of 28 cents per ADS on revenue of $378 million, according to a poll by Thomson Financial.
The company credited surging demand and prices for the solar cells it produces, particularly in Germany and Spain.
Merriman Curhan Ford analyst Brion D. Tanous reiterated his "Buy" rating and raised his 2008 revenue estimate to $2 billion from $1.9 million but lowered his per share profit estimate by 3 cents to $1.64. Analysts expect a profit of $1.57 per share, with $1.99 billion in sales.
He sees shares reaching $57 to $66 in the next 12 months.
"We believe Suntech, with its expansion, should become the largest solar photovoltaic module producer in the world," Tanous wrote in a client note. "The company's supply of polysilicon is improving and lower prices are expected to positively impact margins starting in mid-2008."
Jefferies & Co. analyst Paul Clegg also reiterated his "Buy" rating while increasing his price target to $67 from $63, and raising his estimate for 2008 adjusted earnings per share to $1.65 from $1.59.
"(Suntech) is poised to grow earnings per share rapidly and to sustain margins against potential rapid declines in module prices in 2009 (and beyond), due to high leverage to silicon price reductions and the introduction of a new high-efficiency cell technology," he wrote.
Shares advanced $1.94, or 4.3 percent, to $46.89, after earlier climbing as high as $47.49. In the last 52 weeks, shares have ranged from $28.19 to $90, and are down 43 percent since the start of the year.
