LDK Solar Co. (NYSE: LDK) American Depository Shares are jumping nearly 20% to $40.01, up from a close of $33.58, after the solar wafer manufacturer reported second-quarter results after the close.

LDK experienced some 200% sequential growth in net earnings to $149.5 million, or $1.29 per ADS. Even excluding the change in fair value of prepaid forward contracts, the company earned 82 cents a share, according to Reuters Estimates. That beat -- more like trounced -- analyst estimates of 40-42 cents a share. Revenues for the quarter were $441.7 million, up 345.9% year-over-year from $99.1 million, beating consensus of around $282 million.

The China-based multicrystalline solar wafer, solar cells and solar modules manufacturer said additional manufacturing capacity, which exceeded its own expectations, allowed the company to sell more solar wafers.

LDK didn't just beat estimates, it also raised guidance. It sees third-quarter revenue of $486-496 million vs. consensus of $307.05 million. It raised its 2008 revenue estimate from $1.08-1.18 billion to $1.65-1.75 billion. This is again far higher than analysts estimates of $1.15 billion.

LDK has been a hot stock in a hot sector. Its shares have enjoyed a wild ride in 2007 as concerns over soaring oil prices and global warming have boosted the sector, culminating in LDK recording a 52-week high of $76.75 in late September of '07. Since then, new concerns over Spanish government cutting subsidies sent solar stocks lower.

The effect of these lower subsidies on the sector and LDK remains to be seen as perhaps they could be offset by orders from other European countries. LDK, though, is also trying to control its raw material costs by building polysilicon plants, the progress of which has been "tremendous" according to the company.