Kaufman Bros. Cuts Estimates on LDK Solar (LDK), Weaker Prices and Market Demand
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Price: $1.01 --0%
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 9
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 9
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Kaufman Bros. is maintaining its Buy rating and $8 price target on shares of LDK Solar (NYSE: LDK) following its Q1 results.
The company released its Q1 results with revenue falling below expectations, declined 17 percent sequentially but rose 121 percent year-over-year. LDK did not reiterate its previous guidance due to major uncertainty in the macro environment.
LDK reported a GAAP EPS of $0.95 for Q1 as it closed a 13.8 million share offering during the quarter.
The firm believes the company capitalized on a constrained environment in the quarter and realized Poly ASPs north of $85/Kg.
While volumes in LDK's poly segment were 32% better than the firms expectations, wafer volumes were down 9% and wafer OEM processing volumes were down over 90% compared to its forecasts.
Due to current market trends, Kaufman Bros. is cutting its 2011 and 2012 revenues estimates from $3.7 billion and $4.7 billion to $3.4 billion and $4.4 billion. It is also lowering its 2011 and 2012 EPS estimates from $3.00 and $3.75 to $2.74 and $3.01.
An analyst at the firm comments, "we continue to believe the company has the ability to ramp production and assuming a more positive macro environment drive earnings through higher volumes and utilization levels that would offset price declines of 15%-20%. However, given the industry uncertainties, overall solar installations are not ramping as quickly as expected and large inventories of solar wafers are being reported in the supply chain."
For more ratings news on LDK Solar click here and for the rating history of LDK Solar click here.
Shares of LDK Solar closed at $7.10 yesterday.
The company released its Q1 results with revenue falling below expectations, declined 17 percent sequentially but rose 121 percent year-over-year. LDK did not reiterate its previous guidance due to major uncertainty in the macro environment.
LDK reported a GAAP EPS of $0.95 for Q1 as it closed a 13.8 million share offering during the quarter.
The firm believes the company capitalized on a constrained environment in the quarter and realized Poly ASPs north of $85/Kg.
While volumes in LDK's poly segment were 32% better than the firms expectations, wafer volumes were down 9% and wafer OEM processing volumes were down over 90% compared to its forecasts.
Due to current market trends, Kaufman Bros. is cutting its 2011 and 2012 revenues estimates from $3.7 billion and $4.7 billion to $3.4 billion and $4.4 billion. It is also lowering its 2011 and 2012 EPS estimates from $3.00 and $3.75 to $2.74 and $3.01.
An analyst at the firm comments, "we continue to believe the company has the ability to ramp production and assuming a more positive macro environment drive earnings through higher volumes and utilization levels that would offset price declines of 15%-20%. However, given the industry uncertainties, overall solar installations are not ramping as quickly as expected and large inventories of solar wafers are being reported in the supply chain."
For more ratings news on LDK Solar click here and for the rating history of LDK Solar click here.
Shares of LDK Solar closed at $7.10 yesterday.
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