Analyst Previews MEMC Electronic's (WFR) Q3 Earnings

Hapoalim Securities is out with a research note previewing MEMC Electronic Materials' (NYSE: WFR) Q3 earnings, which are due out after the close today. The firm rates MEMC Neutral with a $17 price target.

The firm believes MEMC's report will focus on:

• the state of the semiconductor markets
  
• the company's production execution, and output from units 2, 3 and 4 in Pasadena, TX, as well as
  the ramp currently underway at its Merano, Italy fabs
  
• the state of the solar market
  
• updates on the company's share repurchase program
  
• the company's progress in ramping two additional FBR reactors, which it experienced a couple of early "hiccups" with last quarter."

Hapoalim sees MEMC reporting Q3 EPS of $0.88 and sales of $530 million, both of which are in-line with Street estimates. For Q4, the firm is estimating EPS of $0.94 and sales of $545 million, materially below the Street's current estimates for EPS of $1.11 and sales of $608.89 million. For CY09, Hapoalim believes MEMC will report EPS of $3.78, compared to the consensus of $4.78, and sales of $2.2 billion, versus $2.7 billion from the Street.

The firm points out that MEMC has missed the mid-point of its guidance range in 5 of the last 6 quarters, and believes that if the company misses numbers again, the stock will continue to trend lower.

Shares of MEMC are trading lower ahead of the earnings report; the stock most recently traded at $17.62, down 9.8% from yesterday's close.

MEMC Electronic Materials, Inc. designs, manufactures, and sells silicon wafers for the semiconductor industry worldwide.

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