Last week, in my look at LDK Solar's
So that's kind of embarrassing for yours Fool-ly. But having based my opinion on a financial report delivered just about a month prior, I think this turn of events is a bit more embarrassing for the management team that got its near-term outlook so wrong. It was one thing to get caught flat-footed by the freeze in the fall, but becoming prematurely optimistic mid-meltdown is quite another.
Of course, ECD did point out in the last quarterly press release that its guidance was "subject to a variety of risks, including customer credit availability, timing of project closures and consumer and corporate confidence." Given ECD's -- or practically anyone else's -- inability to correctly anticipate such unpredictable shifts, this would seem like a great time to do away with quarterly guidance. But that's another conversation.
Let's dig into the actual changes afoot here, shall we?
First off, top-line guidance for ECD's solar product revenue in the present quarter has been cut from the $90 million to $105 million range to a level approximately on par with the prior year ($65 million, for those wanting an actual number). We're thus talking about solar revenues roughly one-third lower than recently projected (and sequentially as well).
It's clear that First Solar
Fools, I have to recommend remaining in show-me mode when it comes to these solar shops. These cloudy conditions could mark a decent time to initiate a partial position in your favorite PV player, but I think it's far too soon to go "all-in."
Motley Fool CAPS players are mixed on ECD, awarding the company a middle-of-the-road three-star rating. Join the conversation and share your own opinion right here.