LDK Solar Slashes Guidance, Shares Plunge Over 20%

| About: LDK Solar (LDK)

LDK Solar (NYSE:LDK) is indicating a rough quarter as well and revising guidance much lower ahead of its earnings report on August 29. The company now sees quarterly revenues in the range of $480-500 million vs. the previous estimate for revenues of $710-760 million. Wafer shipment guidance has been cut from 500-550MW to 410-430MW and module shipments from 200-220MW to 75-80MW. Gross margins have been slashed from 22-26% to 1.5-2.5% due to an expected $55-60 million inventory write-down.

Full year guidance is cut as well. Revenue guidance drops a full billion from $3.5-3.7 billion to $2.5-2.7 billion, wafer shipments drop from 2.7-2.9GW to 1.8-2GW and module shipments drop from 800-900MW to 750-800MW.