Kaufman Bros. Downgrades MEMC Electronic Materials (WFR) to Hold; Cheap Valuation not Enough
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Price: $8.07 --0%
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 9
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 9
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Kaufman Bros. downgraded MEMC Electronic Materials (NYSE: WFR) from Buy to Hold, PT lowered from $10 to $7.
Kaufman analyst says, "SunEdison reported Non-GAAP revenues of $181.2 million versus our estimate of $191.3 million. A $34 million positive adjustment was factored into Non-GAAP revenues as a result of real estate and leasing sales transactions. Importantly, the company recognized revenue from 30 MW in the quarter versus our estimate of 45 MW, with 20 MW interconnected in the previous quarter. WFR noted that it expects to double installations year over year, which implies 330 MWs of installations for the segment in 2011. We are forecasting 260 MW of installations in 2011 up from 167 MW in 2010...MEMC reported semiconductor revenues of $275.3 million, up 9% sequentially, and 12% above our estimate of $246.5 million. The year-over-year improvement was due to higher volumes partially offset by slightly lower pricing. Operating profit declined in the segment as a result of the Japanese earthquake ($14.2 million) and restructuring efforts ($8.1 million negative impact)."
For more ratings news on MEMC Electronic Materials click here and for the rating history of MEMC Electronic Materials click here.
Shares of MEMC Electronic Materials closed at $6.99 yesterday.
Kaufman analyst says, "SunEdison reported Non-GAAP revenues of $181.2 million versus our estimate of $191.3 million. A $34 million positive adjustment was factored into Non-GAAP revenues as a result of real estate and leasing sales transactions. Importantly, the company recognized revenue from 30 MW in the quarter versus our estimate of 45 MW, with 20 MW interconnected in the previous quarter. WFR noted that it expects to double installations year over year, which implies 330 MWs of installations for the segment in 2011. We are forecasting 260 MW of installations in 2011 up from 167 MW in 2010...MEMC reported semiconductor revenues of $275.3 million, up 9% sequentially, and 12% above our estimate of $246.5 million. The year-over-year improvement was due to higher volumes partially offset by slightly lower pricing. Operating profit declined in the segment as a result of the Japanese earthquake ($14.2 million) and restructuring efforts ($8.1 million negative impact)."
For more ratings news on MEMC Electronic Materials click here and for the rating history of MEMC Electronic Materials click here.
Shares of MEMC Electronic Materials closed at $6.99 yesterday.
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