MEMC Electronic Materials Earnings: Here’s Why Investors are Excited Now

MEMC Electronic Materials Inc. (NYSE:WFR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.44%.

MEMC Electronic Materials Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 73.33% to $0.08 in the quarter versus EPS of $-0.21 in the year-earlier quarter.

Revenue: Decreased 1.88% to $704.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MEMC Electronic Materials Inc. reported adjusted EPS income of $0.08 per share. By that measure, the company beat the mean analyst estimate of $-0.01. It beat the average revenue estimate of $661.46 million.

Quoting Management: “The past year was a challenging one, in which both of our end markets faced hurdles created by macroeconomic concerns and an intensely competitive environment. I am pleased with our fourth quarter and full year 2012 results, and commend our workforce for their commitment and exemplary performance given difficult conditions in both our business segments last year,” commented Ahmad Chatila, MEMC’s Chief Executive Officer. “In semiconductor, our cost reductions have increased our operating leverage, and in solar, we have built a platform for growth that can take advantage of declining solar materials pricing through a flexible sourcing strategy. In 2013, we will strengthen our leadership position by penetrating new markets in solar and further streamlining our semiconductor operations,” Chatila concluded.

Key Stats (on next page)…

Revenue increased 17.07% from $601.6 million in the previous quarter. EPS decreased 73.33% from $0.30 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.07 and has not changed. For the current year, the average estimate has moved up from a profit of $0.09 to a profit of $0.16 over the last ninety days.

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