MEMC Electronic Materials (WFR) Could Test All Time Lows After Missing On EPS, Guiding Lower

Solar stocks got a jolt of buy interest last week, but have been giving some of that back.  That continues today after US solar manufacturer and developer MEMC Electronic Materials (WFR) reported results that were below analyst estimates.  The company reported an EPS of .03/share vs the expectation of .10/share.  On the bright side, the company beat analyst estimates on the revenue side posting $859 million vs the estimate for $782 million.  The stock is being helped either by the fact that the company is expecting to miss estimates next quarter too as selling prices continue to fall.  They see EPS and revenue this quarter coming in at breakeven to .20/share on revenues of $800 – $1.1 billion.  That’s quite a spread in the EPS estimate. 

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CEO Ahmad Chatila said, “Our Solar Materials business experienced further deterioration in solar wafer pricing, but remains positioned to compete in this uncertain market environment as customers turn to higher quality, stable suppliers with solid balance sheets.”

Shares are off nearly 13% today and looking like they want to retest the area around $4.80 in the coming days, if not today.  Taking out that level with volume could result in a test of all time lows.  The stock was beginning to look promising last week when it pushed above the 50 day moving average for the first time in many months, but the stock has fallen back into the base and should be avoided.

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