Talk about stocks that have fallen far and fast. LDK Solar (LDK) was looking to add a bit of momentum with its earnings report, as the stock is battling overhead resistance from its 20-week moving average. This trendline has pushed the stock lower for a majority of 2009 and 2008, during which LDK has dropped from its late-2008 high of $52.40 to its current perch near the $8 level.The good news is that a news event like an earnings report could lend momentum to any squandering stock, so let's see what LDK reported. The solar panel producer earned 27 cents per share in the third quarter, far worse than last year's same-quarter earnings of 77 cents per share. Quarterly revenue was nearly halved, as LDK brought in $281.9 million compared to $542 million.
The good news is that analysts called for a loss of 13 cents per share on revenue of $259 million. The company's CEO stated, "Our financial results ... reflect the recent improvement in the operating environment for the solar industry." Looking ahead, LDK forecast fourth-quarter revenue of $280 million to $310 million, outpacing the Street's expected $259 million.
With news like this, it's no wonder the stock soared over 15% in pre-market trading. The stock faces plenty of hurdles, but we could see a quick burst of upward momentum. From there, we could see the momentum build. Of course, the stock could shrink away from the resistance as it has done in the past.
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