Chinese solar firm LDK Solar (NYSE: LDK) reported earnings Wednesday, revealing that a massive writedown caused weaker-than-expected earnings. LDK reported a fourth-quarter loss of $1.25 per share, compared to a gain of 77 cents per share in the previous quarter and earnings of 44 cents per share in the same quarter last year.The company's revenue increased more than twofold compared to last year, but the $426.6 million was 21.3% lower on a sequential basis. Analysts were expecting a loss of 84 cents per share on revenue of $422 million. The quarterly results took a hit of $216.7 million related to an inventory writedown.
As for the current quarter, the company expects revenue between $240 million and $280 million. This range is a far cry from the Street's expected revenue of $412.2 million. The story is the same for full year earnings, as LDK forecast revenue between $1.4 billion and $1.8 billion. The Street expects the sultan of the sun to report revenue of $1.92 billion.
LDK's CEO looked forward to 2009, noting, "We enter 2009 with conservative optimism ... In light of the continued economic slowdown and global credit crisis, we recently amended our expansion plans to lower capital expenditure needs in the near term and to better reflect muted market expectations for 2009."
As for the stock, shares of LDK were trading in the $15 region as recently as January, but they have fallen precipitously -- currently relying on support at the $4 level. Turning to a weekly chart, we can see just how far the shares has fallen. In September, shares of LDK were trading in the $45 region -- a good deal higher than the stock's current position.
LDK is poised to start the morning lower as investors digest the earnings report.
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Reader Comments (Page 1 of 1)
3-26-2009 @ 11:11PM
solarcountry said...
Lets go Evergreen Solar.
http://www.solarcountry.us