GT Advanced Tech Swings To Loss, Lifts FY EPS Outlook; Shares Up

(RTTNews) - Shares of GT Advanced Technologies Inc. (GTAT) surged 12 percent in extended trade on Monday after the solar and LED products maker lifted its earnings forecast for the full year 2014.

Meanwhile, GT Advanced, which supplies sapphire-glass materials to Apple Inc. (AAPL), posted a loss for the second quarter, as revenues and gross margins declined sharply.

For the full year 2014, the Merrimack, New Hampshire-based company now expects earnings of $0.12 to $0.18 per share, compared to prior outlook of $0.02 to $0.18 per share. GT Advanced now projects revenues of $600 million to $700 million, compared to prior estimate of $600 million to $800 million.

Analysts polled by Thomson-Reuters currently expect earnings of $0.03 per share on revenues of $666.80 million for the full year.

Chief Executive Tom Gutierrez said, "We remain confident in our ability to achieve our 2016 non-GAAP earnings per share target of at or above $1.50. This is driven by the expected contributions of Merlin, Hyperion and our other new technology platforms, along with the growth of our sapphire, polysilicon and PV businesses."

The company posted second-quarter loss of $86.38 million or $0.63 per share, compared to a profit of $11.95 million or $0.10 per share last year. Adjusted loss for the quarter was $0.16 per share compared to last year's adjusted earnings of $0.19 per share.

On average, nine analysts polled by Thomson Reuters expected a loss of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.

GT Advanced said its revenues for the second quarter dropped to $58.0 million from $168.3 million last year. Analysts currently expect revenues of $63.94 million for the quarter.

GTAT closed Monday's trading at $14.13, up $0.18 or 1.28%, on the Nasdaq. The stock further gained $1.62 or 11.47%, on the Nasdaq.