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Solar stocks haven’t caught a break in recent weeks, depressed by fears of an uncertain investment tax credit, a cut in Spanish subsidies and an overall economic slump. But here’s an exception: Chinese solar wafer maker LDK reported earnings on Monday above expectations and saw its shares jump almost 20 percent in after hours trading.
For the second quarter ended June 30 2008 LDK reported revenues of $441.7 million, up almost 350 percent from the second quarter of 2007 when the company reported $99.1 million. Net income was equally impressive — the company reported $149.5 million, or $1.29 per diluted ADS. As Marketwatch points out analysts were expecting earnings of 40 cents an ADS on revenue of $287 million. Chairman and CEO Xiaofeng Peng said in the release that the strong quarter resulted from the fact that expansion of the company’s wafer capacity exceeded expectations.
For the third quarter of this year LDK had more good news to share — the company said it is expecting revenues in the range of $486 million to $496 million; full year revenue is projected to be in the range of $1.65 billion to $1.75 billion. If you remember, LDK was also in the news last week, but with a decidedly more negative effect. GT Solar can thank LDK for helping the crash and burn of its IPO, after LDK said it had ditched GT Solar for a competitor.