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LDK Solar Misses Expectations For Q1 2012 Earnings

June 26, 2012

Revenues and profits missed the mark as LDK Solar (LDK :NYSE) reported its numbers for Q1 2012.

Net revenues for Q1 2012 were $200.1 million, a 74 percent drop from the $766.3 million reported in the same quarter of the previous year. Net revenues were within the range of the $190 million to $230 million Q1 guidance, but analysts were expecting $298 million from the solar manufacturer.

Contributing to the net revenue woes was a 74 percent decline in wafer cells. LDK shipped 164.4 megawatts (MW), a steep decline from the 631.5 MW in the same quarter of the previous year.

The continuing drop in the price of polysilicon and the high cost of its production at LDK forced the company to take a write down of $91.1 million.

Net loss for the quarter was $182.5 million or $1.46 per ADS share. Analysts had been expecting a loss of $1.14 per share.

Optimism for LDK’s near-term prospects can’t be very high considering the uninspiring guidance they offered. For Q2 2012, they offered guidance of $220 million to $270 million for revenues, wafer shipments of 300 MW to 350 MW and cell and module shipments of 140 MW to 180 MW.

For 2012, LDK offered lowered its revenue guidance $2.0 billion to $2.7 billion to  $1.5 billion to $2.0 billion. LDK also lowered its production guidance across the board while sticking with its numbers for PV system project construction.

Considering the lack of positives from today’s earnings release, shares of LDK were only down 6.93 percent in afternoon trading.

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