Traders Absorb Profit Change of These 2 Stocks After Earnings

MEMC Electronic Materials Inc. (NYSE:WFR) reported its results for the fourth quarter. Reported a loss of $1.48 billion ($6.44 per diluted share) in the quarter. The semiconductor company had net income of $12.6 million or 5 cents per share in the year earlier quarter. Revenue fell 15.6% to $717.8 million from the year earlier quarter. MEMC Electronic Materials Inc. reported an adjusted net loss of 9 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 14 cents per share. It fell short of the average revenue estimate of $769.5 million.

“During the fourth quarter and in the midst of a semiconductor market cyclical downturn and what we view as a prolonged and severe solar market dislocation, we initiated a broad restructuring to improve our overall competitive position,” said MEMC’s Chief Executive Officer Ahmad Chatila. “While the semiconductor market remains soft, we see signs of an improved second half of 2012. As the market recovers, we believe our productivity efforts and 300mm expansion will pay dividends. In the restructuring, we have sized the Solar Materials business to supply our downstream pipeline with low cost, high quality solar materials products. Although solar interconnections roughly doubled in 2011 and we expect strong growth in 2012, uncertainty regarding feed-in-tariffs and credit markets in Europe will remain challenging in 2012. Our operations and pipeline in the most promising, stable markets, and our brand recognition position us for long-term growth in solar. Through productivity and restructuring efforts, we will be positioned for both semiconductor, and eventually solar, market upturns.”

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).

Zillow Inc. (NASDAQ:Z) climbed to a profit in the most recent quarter, beating Wall Street estimates. Reported a profit of $922,000 (3 cents per diluted share) in the quarter. Zillow Inc. had a net loss of $486,000 or a loss 4 cents per share in the year earlier quarter. Revenue rose more than twofold to $19.9 million from the year earlier quarter. Zillow Inc. reported adjusted net income of 4 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 3 cents per share. It beat the average revenue estimate of $18.8 million.

“The fourth quarter was another excellent one for Zillow, capping off an outstanding year that further strengthens our market leadership position,” said Spencer Rascoff, chief executive officer of Zillow. “Our continued product innovation, particularly on mobile and in expanding the types of services we offer real estate professionals, is fueling our growth and expanding Zillow’s total addressable market. Additionally, our revenue model spans across the Web and mobile, which positions us exceptionally well for further revenue gains from mobile in 2012 and beyond.”

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com