Kaufman Bros. Cuts Estimates on LDK Solar (LDK) Following Q3 Results
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Rating Summary:
2 Buy, 2 Hold, 7 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Following the release of LDK Solar's (NYSE: LDK) Q3 results, Kaufman Bros. is reiterating its Sell rating and $ 2 price target on the shares.
The company's Q3 results of $472 million in sales and earnings of ($0.87) were mixed with the firm's estimates of $460 million and $($0.42). The firm notes that lower volumes and price declines in the company's wafer segment lead to the 30 percent top-line decline year over year.
LDK currently has roughly $800 million in cash on its balance sheet after burning through $280 million during the quarter and increasing debt by $300 million.
An analyst at Kaufman comments, "If LDK is unable to fill its factory due to the weak demand environment, then we believe that it will be extremely difficult for the company to return to a state of positive cash flow. During 3Q11, all significant balance sheet metrics deteriorated."
The firm has cut its FY11 and FY12 EPS estimates from ($0.45) and ($1.10) to ($1.04) and ($1.17). For FY11 and FY12, Kaufman forecasts revenue of $2.18 billion and $2.21 billion.
For an analyst ratings summary and ratings history on LDK Solar click here. For more ratings news on LDK Solar click here.
Shares of LDK Solar closed at $3.00 yesterday.
The company's Q3 results of $472 million in sales and earnings of ($0.87) were mixed with the firm's estimates of $460 million and $($0.42). The firm notes that lower volumes and price declines in the company's wafer segment lead to the 30 percent top-line decline year over year.
LDK currently has roughly $800 million in cash on its balance sheet after burning through $280 million during the quarter and increasing debt by $300 million.
An analyst at Kaufman comments, "If LDK is unable to fill its factory due to the weak demand environment, then we believe that it will be extremely difficult for the company to return to a state of positive cash flow. During 3Q11, all significant balance sheet metrics deteriorated."
The firm has cut its FY11 and FY12 EPS estimates from ($0.45) and ($1.10) to ($1.04) and ($1.17). For FY11 and FY12, Kaufman forecasts revenue of $2.18 billion and $2.21 billion.
For an analyst ratings summary and ratings history on LDK Solar click here. For more ratings news on LDK Solar click here.
Shares of LDK Solar closed at $3.00 yesterday.
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