LDK Solar Co., Ltd. Earnings Cheat Sheet: Profit Streak Snapped by a Loss

LDK Solar Co., Ltd. (NYSE:LDK) swung to a loss in the second quarter, missing analysts’ forecast. LDK Solar Company, Ltd. 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 Co Earnings Cheat Sheet for the Second Quarter

Results: Swung to a loss of $87.7 million (62 cents per diluted share) in the quarter. LDK Solar Co., Ltd. had a net income of $45 million (36 cents per share) in the year earlier quarter.

Revenue: Fell 11.7% to $499.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LDK fell short of the mean analyst estimate of 42 cents per share. It fell short of the average revenue estimate of $716.4 million.

Quoting Management: “Our second quarter results reflect the challenging solar industry dynamics that resulted from recent policy revisions in Europe and consequently reduced demand for PV products,” stated Xiaofeng Peng, Chairman and CEO of LDK Solar. “Lower pricing across the supply chain negatively impacted our financial results for the quarter.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 723.8%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 11 cents, and in the fourth quarter of the last fiscal year, it was ahead by 15 cents.

LDK’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $135.4 million in the first quarter, a profit of $290.8 million in the fourth quarter of the last fiscal year and $93.4 million in the third of the last fiscal year.

Competitors to Watch: 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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(Source: Xignite Financials)