LDK Solar Earnings: Here’s Why the Stock is Falling Now

LDK Solar Co., Ltd. (NYSE:LDK) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 12.8%.

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LDK Solar Co., Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-1.21 in the quarter versus EPS of $-1.46 in the year-earlier quarter.

Revenue: Decreased 47.88% to $104.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LDK Solar Co., Ltd. reported adjusted EPS loss of $1.21 per share. By that measure, the company missed the mean analyst estimate of $-0.96. It beat the average revenue estimate of $97.2 million.

Quoting Management: “The first quarter operating environment remained challenging for the solar industry,” stated Xingxue Tong, President and CEO of LDK Solar. “We are undertaking a number of initiatives focused on the restructuring of our business. We are working closely with our stakeholders and relevant governmental agencies to negotiate solutions. Furthermore, we remain committed to improving our cost structure by driving down production costs, tightening operating expenses and adapting our overall business to the evolving demand environment to position LDK Solar for long-term growth.”

Key Stats (on next page)…

EPS increased to $-1.21 in the quarter versus EPS of $-2.96 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.84 to a loss $0.85. For the current year, the average estimate has moved down from a loss of $2.99 to a loss of $3.44 over the last ninety days.

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