[June 14, 2011] GT Solar shares surge on updated outlook Tweet (Associated Press Via Acquire Media NewsEdge) LOS ANGELES -- Shares of GT Solar International Inc. surged Tuesday, a day after the company raised its fiscal first-quarter earnings and revenue outlook, anticipating a strong year-end backlog due to demand for its sapphire furnaces. An analyst responded by bumping up his price target for GT's shares and increasing his earnings estimates for the company. THE SPARK: GT Solar said Monday it expects first-quarter fiscal 2012 revenue to be $225 million, up from a prior estimate range of $140 million to $150 million. The company also raised its first-quarter earnings per share estimate to 30 cents, up from its prior forecast of between 8 cents and 11 cents. In addition, GT Solar said it expects a backlog at the end of fiscal 2012 of at least $1.6 billion, up from a previous estimate of $1 billion. THE BIG PICTURE: GT Solar, based in Merrimack, N.H., makes equipment for producing parts for solar energy, Light Emitting Diode (LED) and other markets. Demand for solar equipment has been strong, helping boost the company's sales. Its capacity to make its new sapphire furnaces, which are used to manufacture LED substrates, has been ramping up quickly and driving its order backlog. THE ANALYSIS: Pacific Crest Securities analyst Weston Twigg said in a report Tuesday that GT Solar's current orders and backlog can support its growth in fiscal 2012 and 2013, even if the company's photovoltaic furnace business begins to slow as demand for solar eases. In contrast, demand for GT Solar's new sapphire furnaces is extremely high and could go higher, Twigg said. The analyst raised his first-quarter earnings estimate for GT Solar to 31 cents a share, up from his previous forecast of 11 cents a share. He expects revenue for the quarter to be $227 million, up from an earlier estimate of $152 million. Among other estimate revisions, Twigg increased his forecast for GT Solar's fiscal 2013 revenue to $1.43 billion, up from an earlier forecast of $1.2 billion. The analyst noted that estimate could prove to be overly conservative if the company continues to rack up orders. Twigg also raised his price target to $19 from $18 and reiterated his "Outperform" rating on the company. SHARE ACTION: Up 88 cents, or 7.2 percent, to $13.07 in afternoon trading. Shares have traded between $5.36 and $14 over the past 12 months. (c) 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. [ Back To TMCnet.com's Homepage ]