Earnings Preview: LDK Solar Reports On June 26 Before The Open

| About: LDK Solar (LDK)

LDK Solar Co., Ltd. (NYSE:LDK), together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules.

It is scheduled to report its Q1 2012 results on June 26, 2012, before the market opens.

Technical Overview

Key Metrics
  • Market Cap: 276.39M
  • 52-week trading range: 1.54 - 7.52
  • Price/Sales: 0.13
  • Price/Book: 0.45
  • PEG Ratio: -0.10
  • Total Debt: 3.45B
  • Annual dividend yield: N/A
  • Return on Equity: -65.33%
  • Return on Assets: -1.74%

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last three quarters. In the last quarter it reported ($4.63) loss per share, failing to meet analyst estimates of ($0.85) loss.

The consensus EPS is ($1.14) loss based on 3 analysts' estimates, down from $0.95 a year ago. Revenue estimates are $225.47M, down from $766.34M a year ago. The median target price by analysts for the stock is $2.05.

Average recommendation: Underweight

Source: Marketwatch

Analyst Upgrades and Downgrades
  • On April 30, 2012, the company was downgraded from Hold to Sell at Auriga.
  • On April 23, 2012, the company was upgraded from Sell to Hold at Auriga.
Latest Developments
  • On June 4, 2012, LDK Solar Co Ltd announced that the Company has signed three multi-year engineering, procurement, and construction (EPC) agreements. All three projects are located in the Gansu province of the People's Republic of China.
  • On April 30, 2012, LDK Solar Co Ltd reaffirmed fiscal 2012 guidance and expects revenue in the range of $2.0-$2.7 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $2.0 billion for fiscal 2012.
  • On March 19, 2012, LDK Solar Co Ltd revised announced that for the fourth quarter of 2012, LDK Solar revised its guidance for revenue to be in the range of $440 million to $450 million.
  • On March 1, 2012, Sunways AG announced that the increase in the share capital of the Company to EUR 17,378,613 has been validly completed. Sunyways AG issued 5.79 million shares.
  • On December 31, 2011, Sunways AG announced that only LDK Solar Germany Holding GmbH, an indirect subsidiary of LDK Solar Co., Ltd., has been entitled to subscribe for its new shares.

LDK Solar Co., Ltd. operates in Semiconductor - Broad Line industry. The company could be compared to JA Solar Holdings Co., Ltd. (NASDAQ:JASO), JinkoSolar Holding Co., Ltd. (NYSE:JKS), ReneSola Ltd. (NYSE:SOL), and Suntech Power Holdings Co. Ltd. (NYSE:STP). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

LDK ChartClick to enlarge

LDK data by YCharts

Competitors' Latest Development
  • On June 14, 2012, Ja Solar Holdings Co Ltd announced that Board of Directors has approved a share repurchase program, effective immediately, that authorizes JA Solar to repurchase up to a USD100 million worth of its issued and outstanding American Depositary Shares (ADSs) prior to September 30, 2012.
  • On May 21, 2012, JinkoSolar Holding Co., Ltd. announced it will provide modules for a 50 megawatt (MW) solar project operated by state-owned renewable energy development company GSHHSD in northwestern China.
  • On April 24, 2012, JinkoSolar Holding Co., Ltd. announced that JinkoSolar Co., Ltd., the Company's wholly owned subsidiaries, successfully issued unsecured one-year short-term bonds with a principal amount of RMB300 million on April 23, 2012.
  • On February 14, 2012, JinkoSolar Holding Co., Ltd. announced the addition of an Australian subsidiary, JinkoSolar Australia Co; Ltd, based in Queensland, Australia . The newly opened office will serve as a sales and delivery hub and will house approximately 4-5 MW of modules for the region, supporting the Company's growth in the photovoltaic industry.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.