LDK Solar Co. Ltd. Earnings: Here’s Why Investors are Excited Now

LDK Solar Co., Ltd. (NYSE:LDK) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.93%.

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LDK Solar Co., Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-3.68 in the quarter versus EPS of $-4.63 in the year-earlier quarter.

Revenue: Decreased 32.08% to $135.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LDK Solar Co., Ltd. reported adjusted EPS loss of $3.68 per share. By that measure, the company missed the mean analyst estimate of $-0.84. It missed the average revenue estimate of $263 million.

Quoting Management: “Our business continued to be affected by the significant challenges that remained pervasive throughout the solar industry,” stated Xingxue Tong, President and CEO of LDK Solar. “Our fourth quarter results reflect the industry-wide overcapacity and resulting pressure to ASP’s and margins. Amidst these challenging market conditions, we are dedicated to working closely with our stakeholders and the relevant governmental agencies to adapt our strategy to position LDK Solar for recovery and long-term growth.

Key Stats (on next page)…

Revenue decreased 53.38% from $291.52 million in the previous quarter. EPS decreased to $-3.68 in the quarter versus EPS of $-1.08 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $1.18 to a loss $0.88. For the current year, the average estimate has moved down from a loss of $5.16 to a loss of $5.42 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)