MEMC Electronics (WFR) Misses Estimates, Posts Loss But Continues To Improve

Posted by Tate Dwinnell | # |
04:43:57 pm on February 3, 2010

MEMC Electronics (WFR) continues to struggle and missed Wall St EPS estimates after the bell today, posting another quarter of red ink at -.02/share (minus one time cost associated with Sun Edison acquisition)  Wall St expected a flat quarter and the whisper number actually called for a small profit, so the stock is selling off a bit after hours, but how it trades tomorrow will depend largely on the guidance which the company will give ahead of the bell tomorrow. 

I still believe WFR is close to bottoming out and that the stock saw the lows in 2008 at $10/share.  Despite the earnings miss, revenues continue to improve sequentially after bottoming out in the first quarter of 09 (last 4 qtrs – $214 mill, $283, $310, $357), but it’s probably going to take more time for this big, double bottom base to play out.  I’ll continue to watch it looking for a place to add a long term position.  I think that happens with a few weeks or couple of months max. 

Shares are currently down about 3% in after hours trading.

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