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A-Power Energy (OTC:APWR) reported Q2 results Thursday morning and missed analyst estimates for both EPS and revenue. The company reported a non GAAP EPS of just $0.02 versus the analyst estimate of $0.14 on revenue of $74.8 million, vs the estimate of $94.22 million. While that’s good for an increase in revenue of 31% over the year ago quarter, EPS fell 85%.

On the bright side, the company is reiterating its full year guidance of $500 million in revenue and $60 million in net profit (which I assume is a GAAP number)

CEO Jinxiang Lu commented on the quarter:

“Our results in the second quarter were primarily driven by growth in our DG business, both domestically and internationally. This segment experienced larger project orders and also benefited from higher international sales in the second quarter which fueled our gross margin increase. We are pleased that our revenue contribution from international projects has exceeded 30% of total revenues for the first time this quarter. With significant wins in Vietnam, Pakistan and Thailand, we hope to continue building upon this international success. While our DG business generated EPC work for wind projects, we did not recognize revenue from wind turbine sales in the second quarter due to delays obtaining final permits for our 2.7 MW turbines scheduled for delivery to our Inner Mongolia and Shandong wind projects. We believe wind turbine sales will pick up in the second half of the year.”

“We have many compelling opportunities in our business that can drive our revenue growth significantly higher in the second half of the year. Our DG business is expected to remain the primary performance driver with sales coming from our existing 15 projects. Significant sales are also expected in our wind turbine business in the second half of the year. We expect to begin delivery of 2.0 MW or larger turbines to customers in the second half of 2010. We are building a platform that will establish A-Power as an emerging leader in both distributed power and alternative power generation systems and are working aggressively to capitalize on the long-term growth opportunities in these areas.”

While it was another disappointing quarter for APWR, traders are looking for an excuse to buy down at these levels. Considering the company reiterated guidance and sees its wind turbine business picking up in the 2nd half of the year, it may be enough to provide a bit of a catalyst in the stock.

Disclosure: None