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UPDATE 1-Power-One Q4 profit beats St, gives weak Q1 rev outlook
February 3, 2011 / 10:39 PM / 7 years ago

UPDATE 1-Power-One Q4 profit beats St, gives weak Q1 rev outlook

* Q4 adj EPS $0.49 vs est $0.40

* Q4 rev more-than-doubles $366 mln

* Sees Q1 rev about $260-$290 mln vs est $313 mln

Feb 3 (Reuters) - Power-conversion products maker Power-One PWER.O posted better-than-expected adjusted quarterly earnings, but gave a weak first-quarter revenue outlook, hurt by inclement weather in Europe and a cut in feed-in-tariffs across multiple markets.

Shares of the company fell 21 percent in extended trading.

Since late last year, green energy incentive cuts across the world, especially Europe, have hurt renewable energy companies.

Feed-in tariffs -- prices utilities are obliged to pay to generators of renewable energy -- are the sector’s lifeline as long as grid-parity, the point at which renewables cost the same as fossil fuel-based power, has not been reached.

For the fourth quarter, net income was $53.5 million, or 35 cents a share, from $5.4 million, or 5 cents a share, a year ago.

Excluding items, the company earned 49 cents, compared with analysts’ view of 40 cents, according to Thomson Reuters I/B/E/S.

Revenue more than doubled to $366 million, beating analysts’ expectation of $352.5 million.

The company said it expects first-quarter revenue $260-$290 million, much below analysts’ view of $313 million.

Shares of the Camarillo, California-based company were down 21 percent at $9.25 on Thursday in trading after the bell. They closed at $11.75 on Nasdaq. (Reporting by Mayuresh Tungare in Bangalore; Editing by Jarshad Kakkrakandy)

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