LDK Solar Co. Ltd. (NYSE:LDK) reported its results for the first quarter. LDK Solar is a solar module manufacturer. The company sells multicrystalline and monocrystalline wafers globally to manufacturers of solar cells and modules.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
LDK Solar Co. Ltd. Earnings Cheat Sheet
Results: Reported a loss of $185.2 million ($1.46 per diluted share) in the quarter. LDK Solar Co. Ltd. had a net income of $135.4 million or 95 cents per share in the year-earlier quarter.
Revenue: Fell 73.9% to $200.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: LDK Solar Co. Ltd. fell short of the mean analyst estimate of a loss of $1.14 per share. It fell short of the average revenue estimate of $225.5 million.
Quoting Management: “Our revenue was within the expected range as our results reflected first quarter seasonality and the continued difficult solar industry conditions,” stated Xiaofeng Peng, Chairman and CEO of LDK Solar. “Industry-wide overcapacity continued and drove price declines across the entire solar supply chain, which significantly reduced our revenue and negatively impacted our margins. “We are navigating the current volatile market environment by focusing on streamlining manufacturing operations, reducing production costs and improving utilization, while closely managing our operating expenses. While we expect to see continued challenging conditions in the solar industry in the near-term, we anticipate that some markets such as China will begin to see improved demand as the year progresses. We firmly believe that lower PV system costs will drive adoption of solar power and long-term market growth,” concluded Mr. Peng.
Looking Forward: Analysts seem more negative about the company’s results for the next quarter than ninety days ago. The average estimate for the second quarter has moved from a loss of 64 cents a share to a loss of $1.06 over the last ninety days. For the fiscal year, the average estimate has moved from a loss of $1.47 a share to a loss of $3.40 over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: