MEMC Electronic Materials (WFR) Misses, Offers No Guidance, Shares Hold Steady
MEMC Electronic Materials (WFR) reported mixed results last night with a non GAAP EPS loss a bit wider than expected at .09 vs the analyst estimate for a .06/share loss, but on better than expected revenues of  $772 million (down 19% over the year ago quarter).  Shares were likely trading up pre-market because the non-GAAP loss wasn’t quite as severe as the company has expected about a month ago.
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The company continues to struggle with its semiconductor and solar wafer business, led by a steep decline in its solar wafer revenue due to continued weak pricing. Â The company was salvaged in the quarter with strength in its SunEdison division which was up 32% over last year and 33% sequentially.
Here are a few highlights of comments made by CEO Ahmad Chatila..
– prolonged and severe solar market dislocation
– solar connections doubled in 2011, sees strong growth in 2012
– uncertainty regarding FIT’s and credit markets in Europe remain a challenge
Due to uncertainty in the semiconductor and solar markets the company has not provided guidance, but is providing a general outlook. Â Â They see revenues decreasing 10 – 15% this quarter over last quarter, but orders picking up in Q2. Â For the full year, the see revenues picking up in the 2nd half.
Technically, it still appears that the worst is out of the way for shares of WFR. Â Even today, with this poor report (missing on EPS, big restructure charge and no specific guidance), shares were up pre-market and holding flat now. Â The key is support of that 50 day moving average right around the $4.50 level. Â It’s important that the level hold in the coming days or there is considerable risk of the stock retesting the lows. Â I do think this is a company that is compelling down here with the big restructuring charge out of the way, but I’d be patient and see how it trades over the next couple weeks.
Tags: earnings, memc eletronic materials, wfr
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