MEMC Electronic Materials Earnings Cheat Sheet: Beats Estimates

S&P 500 (NYSE:SPY) component MEMC Electronic Materials Inc. (NYSE:WFR) reported net income above Wall Street’s expectations for the second quarter. Memc Electronic Material manufactures and sells silicon wafers that are used primarily in semiconductor and solar energy technologies.

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MEMC Electronic Materials Earnings Cheat Sheet for the Second Quarter

Results: Net income for MEMC Electronic Materials Inc. rose to $47.3 million (21 cents per share) vs. $13.8 million (6 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter.

Revenue: Rose 66.3% to $745.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: WFR reported adjusted net income of 29 cents per share. By that measure, the company beat the mean estimate of 7 cents per share. It beat the average revenue estimate of $702.8 million.

Quoting Management: “Our second quarter results demonstrate the resilience of our company following the Japan earthquake and in the midst of a severe solar materials downturn,” said MEMC’s CEO Ahmad Chatila. “Our Semiconductor Materials business recovered quickly from the March earthquake in Japan, and 300mm wafer output is now at pre-earthquake levels despite softening demand in underlying semiconductor markets. Responding quickly to market conditions in solar wafers, our Solar Materials business took actions to restructure customer and supplier agreements and right-size the business.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 78.7%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose more than twofold from the year earlier quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 3 cents, and in the fourth quarter of the last fiscal year, it fell short by 7 cents.

Competitors to Watch: Daqo New Energy Corp. (NYSE:DQ), AXT, Inc. (NASDAQ:AXTI), First Solar, Inc. (NASDAQ:FSLR), SunPower Corporation (NASDAQ:SPWRA), Spansion Inc. (NYSE:CODE), Micron Technology, Inc. (NASDAQ:MU), GT Solar Intl., Inc. (NASDAQ:SOLR), Hoku Corporation (NASDAQ:HOKU), Cymer, Inc. (NASDAQ:CYMI), and Photronics, Inc. (NASDAQ:PLAB).

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(Source: Xignite Financials)

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