LDK Solar (LDK) Finding Support After Earnings

LDK Solar (LDK) reported mixed results after the bell yesterday, reporting an EPS loss of .21/share vs analyst expectations of a smaller loss .06/share as well as the whisper number of a .12/share loss, so no surprise the stock is off this morning.  I’ts trading down about 13% but off the lows and appears to be finding support at the 50 day moving average.  Revenues actually came in ahead of estimates at $283 million which is a 21% bump over the year ago quarter.  They just need to do a better job of cutting costs.

Comments from the CEO:

“We continued to ramp polysilicon production in our 1,000 MT polysilicon plant and are pleased with the progress in the construction our 15,000 MT plant and look forward to the increasing cost savings that in-house polysilicon production will afford as our polysilicon production grows,” continued Mr. Peng. “Additionally, we secured a loan for RMB 200 million from China Development Bank and received approval for a RMB 1 billion credit line from Agricultural Development Bank of China in April. We are proud of our ability to enhance our financial resources at a time when credit remains retracted and believe that the support from China reflects their continued commitment to fostering growth within the local solar industry.””We continue to be confident in our positioning within the solar industry as we believe that our lean cost structure and economies of scale are important differentiators as we pursue our long-term growth strategy,” concluded Mr. Peng.

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