LDK Solar (LDK) Surging After Surprising With A Profit, Guides Higher

LDK Solar (LDK) surprised the St this morning by reporting a profit on a GAAP basis.  I don’t see a non GAAP number in the report and wasn’t seeing an indication at first glance of any large one time gains, but will update this report if that’s the case.  So on a GAAP basis which includes one time gains and losses, the company reported Q3 earnings of $0.27/share which smashed analyst estimates of a .10/loss.  Revenues also beat analyst estimates, but by a small margin at $282 million. 

Adding to the positive report, LDK is guiding higher and sees Q4 revenues of $280-$310 million, versus the consensus of $258.72 million.

Here are some highlights from comments made by the CEO..

– wafer demand strengthening across the board and results reflect improving solar industry
– making progress in ramping operations and completed first production run of the first 5K MT train of the 15K MT plant
– company solidified finances with sale of 15% stake in the 15K MT plant
– momentum in local China solar industry
– continues to be excited about long term growth prospects of solar

Shares of LDK are up about 15% in premarket trading.

Leave a Reply

Your email address will not be published. Required fields are marked *