LDK Solar has started off the new year for solar with a bang. The company significantly raised guidance for both the fourth quarter of FY10 and the entire FY2011 with particularly strong expectations for the module business. Here is a listing of the new sales guidance compared to the old guidance:
4Q10: $870-910M from $710-750 (increase of 21-23%)
FY11: $3.5-3.7B from $2.9-3.3B (increase of 12-21%)
4Q10: 615-620 megawatts (MW) from 580-600 MW
FY11: 2.7-2.9 gigawatts (GW) from 2.5-2.8 GW
4Q10:160-165 MW from 120-130 MW (increase of 27-33%)
FY11: 800-900 MW from 700-800 MW (increase of 13-14%)
4Q10: 25-27% from 24-26%
FY11: 23-28% from 22-28%
LDK increased guidance for in-house polysilicon and cell production as well.
Given increasing fears that pricing competition will hurt solar companies as production capacities ramp up, I will be very interested to hear the source of LDK’s optimism when it reports official earnings. LDK’s guidance could also bode well for other major solar companies.
The stock has gone nowhere for over a month and sits at the bottom of the last big breakout in October, 2010. I am guessing today’s announcement should bring upside momentum back to the stock.
*Chart created using TeleChart:
Be careful out there!
Full disclosure: long LDK (update 1/10/11, 12pm Eastern – sold my shares in LDK. Per recent practice, I posted the trade posted to my twitter account).
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