S&P 500 (NYSE:SPY) component MEMC Electronic Materials, Inc. (NYSE:WFR) will unveil its latest earnings on Wednesday, August 3, 2011. Memc Electronic Material manufactures and sells silicon wafers that are used primarily in semiconductor and solar energy technologies.
MEMC Electronic Materials, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 8 cents per share, a swing from a loss of 3 cents in the year earlier quarter. During the past three months, the average estimate has moved down from 16 cents. Between one and three months ago, the average estimate moved down and dropped from 11 cents during the last month. For the year, analysts are projecting net income of 99 cents per share, a rise of more than twofold from last year.
Past Earnings Performance: The company enters this earnings report having missed estimates the last four quarters. Last quarter, the company fell short of expectations by 3 cents, reporting profit of of 9 cents per share against a mean estimate of net income of 12 cents per share.
Wall St. Revenue Expectations: On average, analysts predict $702.8 million in revenue this quarter, a rise of 56.8% from the year ago quarter. Analysts are forecasting total revenue of $3.46 billion for the year, a rise of 54.5% from last year’s revenue of $2.24 billion.
Analyst Ratings: Analysts are bullish on MEMC Electronic Materials as eight analysts rate it as a buy, three rate it as a sell and 11 rate it as a hold.
The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 81.8%, 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.
MEMC Electronic Materials’ loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $4.5 million in the first quarter, a profit of $12.6 million in the fourth quarter of the last fiscal year, a profit of $17.6 million in the third of the last fiscal year and a profit of $13.8 million in the second quarter of the last fiscal year.
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).
Stock Price Performance: During May 3, 2011 to July 28, 2011, the stock price had fallen $3.70 (-33.1%) from $11.19 to $7.49. The stock price saw one of its best stretches over the last year between December 27, 2010 and January 5, 2011 when shares rose for eight-straight days, rising 3.8% (+42 cents) over that span. It saw one of its worst periods between June 2, 2011 and June 13, 2011 when shares fell for eight-straight days, falling 13.3% (-$1.33) over that span. Shares are down $3.77 (-33.5%) year to date.
(Source: Xignite Financials)