LDK Solar Co., Ltd. (LDK) is scheduled to report its Q2 2012 results on September 17, 2012, before market opens. The Street expects EPS and revenue of ($1.43) loss and $237.47M, respectively. In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from LDK and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has failed to meet analysts' estimates in the last four quarters. In the last quarter, it reported ($1.46) loss per share, failing to meet analyst estimates of ($1.14) loss.
The consensus EPS estimate is ($1.43) loss based on 3 analysts' estimates, down from ($0.62) loss a year ago. Revenue estimates are $237.47M, down from $499.44M a year ago. The median target price by analysts for the stock is $1.40.
Average recommendation: Underweight
- On June 26, 2012, LDK Solar Co Ltd announced that based upon current business conditions for the second quarter of 2012, it estimates revenue to be in the range of $220-$270 million.
- On June 4, 2012, LDK Solar Co Ltd announced that the company has signed three multi-year engineering, procurement, and construction 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.
First Solar (FSLR), JA Solar Holdings (JASO), ReneSola (SOL), Trina Solar Limited (TSL), and Yingli Green Energy Holding (YGE) are considered major competitors for LDK Solar and the chart below compares the stock price changes as a percentage for the selected companies for the last one-year period.
Competitors' Latest Development
- On September 12, 2012, Reuters reported that Trina Solar Ltd would cut an unspecified number of jobs and separate its photovoltaic module and systems units to reduce costs. The announcement comes as Trina and other makers of solar panels grapple with a sharp decline in panel prices that has shrunk profit margins for nearly two years.
- On September 11, 2012, First Solar Inc announced that it has signed power purchase agreements with Pacific Gas and Electric Company (PG&E) for 72 megawatts AC of solar electricity to be generated at two photovoltaic power plants that First Solar is developing in central California.
- On September 6, 2012, Trina Solar Ltd announced that the European Commission announced the initiation of an anti-dumping investigation concerning imports into the European Union of crystalline silicon photovoltaic modules and key components (i.e. cells and wafers), originating in China.
- On August 27, 2012, ReneSola Ltd announced that it has agreed to sell 4.6 megawatts of its high-quality, high-efficiency 255 watt poly modules to Solar Planet Power Inc. (Solar Planet).
- On August 24, 2012, ReneSola Ltd announced that for the third quarter of 2012, it expects revenues to be in the range of USD200-USD220 million. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $228 million for the third quarter of 2012.
- On August 7, 2012, Ja Solar Holdings Co Ltd announced that it has signed a supply agreement with A Shade Greener, a UK-based PV installer and installer of free solar panels to the residential market in the United Kingdom.
- On August 2, 2012, First Solar, Inc. reported in its Form 8-K that effective July 30, 2012, Mr. Ahearn resigned as an employee of the Company and the Employment Agreement terminated.
- On August 2, 2012, ReneSola Ltd. announced that it has sold 8 MW of high-quality, high-performance monocrystalline solar modules to True Value Solar. Under the terms of the agreement, ReneSola will ship a total of 8 MW of its high-quality, high-performance monocrystalline solar modules directly to True Value Solar's distribution sites in Australia by the end of this month.
- On August 1, 2012, First Solar, Inc. announced that it is increasing fiscal 2012 guidance and expects net sales of $3.6-$3.9 billion, compared to prior guidance of $3.5-$3.8 billion.
- On July 30, 2012, Ja Solar Holdings Co Ltd announced that it entered into a share transfer agreement (the Agreement) on July 23, 2012 with M.SETEK Co., Ltd., a polysilicon and solar wafer manufacturer in Japan controlled by AU Optronics Corp.
- On July 23, 2012, ReneSola Ltd. announced that it has sold 5.95 MW of its high-efficiency Virtus modules to Solargain PV Pty Ltd ("Solargain"), one of the top solar distributors in Australia and one of Australia's integrated solar energy and solar hot water suppliers.
- On June 26, 2012, Trina Solar Ltd announced that its board of directors and audit committee approved the appointment of KPMG as its independent auditors for the year ending December 31, 2012.
- On June 20, 2012, enXco, an EDF Energies Nouvelles Company, announced that they have signed a solar module supply agreement with First Solar Inc. First Solar will deliver 61 megawatts peak (MWp) of thin film modules starting in September 2012 for enXco's Catalina Solar Project located in Kern County, California.
The stock has a market capitalization of $165.56M and is currently trading at $1.24 with a 52-week range of $1.20-$6.92. The stock's year-to-date performance has been -70.41%. It is currently trading below 20, 50 and 200 SMA.
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.