Evergreen Solar (ESLR) Reports Mixed Results, But Beginning To Cut Costs

Evergreen Solar (ESLR) reported mixed results after the bell last night, but showed the biggest improvement in EPS in a long time and beat analyst estimates.  The company posted an EPS loss of .08/share vs the analyst estimate of a .11/share loss.  That’s the best EPS performance in at least a couple years and a big improvement over the year ago quarter when they reported a .40/share loss.  I’ve been hard on ESLR over the past year or so for their inability to cut costs and turn a profit, but with these results it appears they are at least making progress towards that goal.  Revenues came in just shy of the analyst estimate of $87.5 million at $86.5 million.

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CEO Michael El-Hillow commented, “The Evergreen team has performed exceptionally well in both Devens and Wuhan. The Devens facility is now exceeding our original operational target of 40 megawatts of production per quarter, further validating the performance of our proprietary furnace technology. In mid-September, we held official grand opening ceremonies in Wuhan and began producing Evergreen Solar branded solar panels. We are making good progress with our production ramp in China and produced 3.4 MW of product in Wuhan during the quarter.”

Shares of ESLR are under some pressure today and may need to test what is now support at the 50 day moving average at .75/share.  Traders are probably selling the news after a big run in early October.  A good quarter out of ESLR which shows a step in the right direction, but not good enough to keep the stock moving higher in the short term.

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