GT Solar International, Inc. (SOLR) reported its highest revenue levels in company history in its latest quarterly announcement. Shares are trading with great valuations, solid earnings momentum and a Zacks #1 Rank (Strong Buy).
Company Description
GT Solar makes polysilicon production technology and other material for solar, LED and similar markets.
Top Line Swells 65%
On May 23 GT Solar reported fourth quarter results that showed quarterly revenues jumping 39%, to $272 million. Annual revenue was up 65% to $899 million which is a company record.
Net income for the quarter jumped from $33.3 million to $51.9 million, a 56% improvement. Earnings worked out to $0.41 per share, up 78% from $0.23 and topping the Zacks Consensus Estimate by 7 cents. The company now has 6 consecutive earnings surprises.
Raising the Bar
In addition to the results, GT Solar raised its 2012 guidance. Full-year revenue is expected to come in between $1.0 billion and $1.1 billion. The EPS guidance was above the consensus at the time so analysts quickly raised their outlook as well.
The average estimate for fiscal 2012 is up 28 cents, to $1.70 since the report. Next year’s projections are up 48 cents on average, to $1.69.
Those levels put growth at 37% this year and essentially flat next year. But, given the historical earnings trends, next year’s consensus could quickly move higher as the year continues.
Great Value as Well
Right now shares are exchanging hands with a single-digit P/E and a PEG ratio of just 0.8 times. There is plenty of political, as well as economic, risk in the solar sector but if you’re going to make a play, why not get a cheap one?
The Chart
In regards to that earnings trends I mentioned earlier, take a look at just how sharply those estimates have been rising. That has given us some solid expected growth this year, a great value and a Zacks #1 Rank (Strong Buy).
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service
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