After the closing bell on July 30, Massachusetts-based Evergreen Solar Inc. (NASDAQ: ESLR) reported second-quarter revenues of $63.8 million, compared to $55.8 million for the first quarter of 2009. The company's gross margin for the second quarter of 2009 was 1.9%, compared to 1.2% for the first quarter of 2009.
Unfortunately, these gross margins are way off the 34.7% we saw in the second quarter of 2008.
The decrease in margins from the prior year period was due to lower selling prices for the company's solar panels, a symptom we're seeing throughout the solar sector.
As far as Evergreen's bottom line, the company reported a net loss of 11 cents per share in Q2, a number that includes ongoing charges associated with its Marlboro pilot facility closure and its Midland facility start-up costs.
While the numbers for Evergreen weren't too bad, they certainly weren't stellar, and that's one reason why I'd stay away from the shares here.
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Reader Comments (Page 1 of 1)
8-17-2009 @ 10:00AM
Future1investor said...
While our group has been disappointed with the stock in general, the truth is that this company is fully primed and ready to go just as soon as the economy returns to normal (whenever that is). ESLR has invested in new facilities and tweaked manufacturing processes.
The only question is, will they have enough money to survive the longer than anticipated recession? If they do, then ESLR will be the one to watch closely. Stock at this price is irresistible for a company with the power to roar off the starting line.
Perhaps they scaled up and made ready too soon...but with a little luck and cash, they'll be a surprise top five solar.