LDK Solar Co. Ltd. Earnings Cheat Sheet: Loss Made Worse, Company Falls Short of Estimates

LDK Solar Co. Ltd. (NYSE:LDK) reported its results for the third quarter. LDK Solar is a solar module manufacturer. The company sells multicrystalline and monocrystalline wafers globally to manufacturers of solar cells and modules.

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LDK Solar Earnings Cheat Sheet for the Third Quarter

Results: Reported a loss of $114.5 million (87 cents per diluted share). The company reported profit of $93.4 million (72 cents per diluted share) in the same quarter a year earlier.

Revenue: Fell 30% to $471.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LDK fell short of the mean analyst estimate of a loss of 36 cents per share. It fell short of the average revenue estimate of $616.9 million.

Quoting Management: “During the third quarter, our business was impacted by the continued downturn in the solar industry,” stated Xiaofeng Peng , Chairman and CEO of LDK Solar. “Weak market demand and rapidly declining average selling prices throughout the solar supply chain resulted in shipment volumes and revenues lower than what we previously anticipated. While we continue to believe that the significant opportunities to meet global energy needs with solar power will drive long-term market growth, in the near-term we expect challenging conditions in the solar industry to continue. As such, we remain focused on strengthening our balance sheet, increasing our operating efficiencies and improving our cost structure.”

Key Stats:

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 4 cents with a loss of 24 cents versus a mean estimate of a loss of 20 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from a profit of 25 cents a share to a loss of 33 cents over the last ninety days. For the fiscal year, the average estimate has moved down from a profit of $1.73 a share to a loss of 33 cents over the last ninety days.

Competitors to Watch: LDK Solar Co., Ltd. (LD41), Trina Solar Limited (NYSE:TSL), ReneSola Ltd. (NYSE:SOL), JinkoSolar Holding Co., Ltd. (NYSE:JKS), Suntech Power Hldgs. Co., Ltd. (NYSE:STP), JA Solar Hldgs. Co., Ltd. (NASDAQ:JASO), Canadian Solar Inc. (NASDAQ:CSIQ), Hanwha Solarone Co Ltd (HSOL), First Solar, Inc. (NASDAQ:FSLR), and MEMC Electronic Materials, Inc. (NYSE:WFR).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

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