Seeking Alpha

LDK Solar +5.6% premarket; guidance better than expected

  • LDK Solar (LDK) is guiding for Q4 revenue of $200M-$250M, up from a Q3 level of $156.6M and well above the $136M forecast by the one analyst providing a Q4 revenue estimate.
  • 384.7MW of solar wafers were shipped in Q3, in-line with guidance of 350MW-450MW. Module shipments of 78.7MW were near the high end of a guidance range of 60MW-80MW. LDK expects wafer shipments to rise to 480MW-520MW in Q4, and module shipments to rise to 120MW-160MW.
  • While many Chinese solar peers now have healthy gross margin's, LDK's Q3 gross margin was -24%. That's better than Q2's -46.9%, but down from -11.2% a year ago.
  • The company ended Q3 with $225.9M in cash/equivalents and short-term pledged bank deposits, down from $288.4M at the end of Q2.
  • Though LDK expects its recently-obtained $256M credit facility will help it ramp production, it says the funds are "insufficient to solve even our short-term liquidity associated with our offshore indebtedness," and that it's continuing to work with debtholders to "negotiate a consensual solution." LDK ended Q3 with over $2.8B in debt, over $2.4B of which consisted of short-term borrowings and the current portion of long-term borrowings.
  • Q3 results, PR

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