March 11, 2010 (Chinavestor) A long line of Chinese solar makers reported fourth quarter and full 2009 year financial reports during current earnings season. China Sunergy (NASDAQ:CSUN) just did this morning sending her shares -5.68% down right at the close. Let's take a closer look.
On of the first things coming to mind by looking at the revenue and profit/loss chart below is that the company slid into the red. BAD NEWS. China Sunergy (NASDAQ:CSUN) returned to profitability along the sector in the second quarter and the third, raising hopes that the worst is over. Current quarterly loss of $3.5 million shatters the image of sustainable profitability, at least for the short term.
Most of the good news is that shipments and revenues increased dramatically - just as was the case with the rest of the sector. But unless China Sunergy (NASDAQ:CSUN) can demonstrate constant revenue AND earnings growth, investors will shun this solar maker.
To demonstrate the "might" of the sector, take a look at the latest financials of industry leader Suntech Power (NYSE:STP). The company not only reported constant top line growth for the last four quarters but remained profitable for all of 2009 with a promising dynamics. Better believe it: solar stocks recover.
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