Earnings Preview: MEMC Electronic

| About: SunEdison, Inc. (SUNEQ)

MEMC Electronic (WFR) is expected to report Q1 earnings after the market close on Wednesday, May 9, with a conference call scheduled for 5:30 pm ET.


The consensus estimate is (16c) for EPS and $496.37M for revenue, according to First Call. Analysts are expecting EPS to dip into the red this quarter, after booking a profit of 9c a year ago. MEMC did not provide any real quantitative guidance for Q1 or FY12, citing the ongoing uncertainty in the semiconductor and solar markets. But the company did say last earnings call it saw Q1 adjusted EPS "roughly in-line" with Q4 adjusted EPS, which was (21c). MEMC believes that the cyclical downturn hurting the semiconductor industry will likely bottom out by the next quarter. Though Q1 revenues could be 10%-15% lower sequentially, order growth could ramp by 2Q12. Moreover, the company believes that revenue in 2H12 could be stronger than in 1H12.

Analyst Views

Deutsche Bank expects MEMC's Q1 to mark the bottom, and for guidance to be relatively unchanged. Management guidance from its last report is for FY12 Semiconductor revenue flat year-over-year; FY12 Solar energy systems sales volume greater than 400 MW; FY12 Solar energy systems average pricing of approximately $3.75/watt and FY12 capital spending less than $175M.