MEMC Electronic Materials Third Quarter Earnings Sneak Peek

MEMC Electronic Materials, Inc. (NYSE:WFR) will unveil its latest earnings on Wednesday, November 7, 2012. 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 analyst estimate is for a loss of 12 cents per share, a spike from profit of 3 cents in the year-ago quarter. During the past three months, the average estimate has moved down from one cent. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 12 cents during the last month. Analysts are projecting net loss of 16 cents per share versus net income of 32 cents last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 14 cents per share against a mean estimate of 0 cents per share. In the first quarter, it missed forecasts by 11 cents.

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A Look Back: In the second quarter, the company swung to a loss of $61.3 million (27 cents a share) from a profit of $47.3 million (21 cents) a year earlier, but beat analyst expectations. Revenue rose 8.4% to $808.4 million from $745.6 million.

Wall St. Revenue Expectations: Analysts predict a decline of 41.1% in revenue from the year-earlier quarter to $505.9 million.

Stock Price Performance: Between September 6, 2012 and November 1, 2012, the stock price had fallen 72 cents (-22.3%), from $3.23 to $2.51. The stock price saw one of its best stretches over the last year between June 8, 2012 and June 19, 2012, when shares rose for eight straight days, increasing 29.8% (+50 cents) over that span. It saw one of its worst periods between May 1, 2012 and May 11, 2012 when shares fell for nine straight days, dropping 39.1% (-$1.45) over that span.

Key Stats:

On the top line, the company is looking to build a positive trend after last quarter’s growth snapped a string of drops. Revenue fell 15.6% in the fourth quarter of the last fiscal year and 29.4% in the first quarter before climbing in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.18 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: There are mostly holds on the stock with nine of 15 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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