LDK Solar (LDK) Beats Estimates, Guides Way Above Street

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03:49:16 pm on May 10, 2010

Earnings results from the solar companies continue to be strong and that’s the case for LDK Solar (LDK) after the bell today.  I don’t see a non GAAP number and no clear one time charges for this company, so I’ll stick with the GAAP EPS number of .06/share which beat analyst estimates of .01/share.  Revenues were strong at $347.6 million vs the analyst estimate of $326. The quarter marks the 3rd straight profitable quarter with sequential revenue growth in all 3. 

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The company is raising guidance way ahead of analyst expectations.  They see Q2 sales in the range of $460 – $490 which is about $100 million higher than what analysts expected.  Their full year sales guidance is in the range of $1.6 – $1.7 billion (also ahead of analyst expectations of $1.4 billion).

After a report like this, I don’t think LDK deserves to be trading just off all time lows.  LDK is a former China high flyer that has been off the radar for some time.  This report puts it back on the radar.  It wouldn’t surprise me to see this stock double or triple in the next year or two.

CEO Xiaofengh Peng commented on the quarter: “Continued momentum in the solar industry drove results for the first quarter.  Our efforts to diversify our business within the module market tracked well in the quarter. We brought crystalline module manufacturing in house and signed several module supply contracts during the first quarter. In our wafer business, we continue to closely monitor demand levels to meet our customers’ needs. In April we achieved annualized wafer capacity of 2.0 GW, maintaining our industry leadership as we continue to represent a significant share of global wafer capacity.  

Shares of LDK are up about 6% in after hours trading, but still quite a bit of technical damage to work through.  A move above the April high of 8.53 would be very bullish for LDK.  It could take several weeks or even a few months for that to play out, but I believe it will.

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