Shares of LDK Solar Co. slipped in premarket trading Tuesday after the China-based solar wafer maker posted a higher first-quarter profit but trimmed a portion of its full-year guidance.
The stock lost $2.31, or 6.2 percent, at $35.15.
Late Monday, the company said first-quarter profit rose to 45 cents per share, beating analysts estimates. LDK also raised its full-year sales guidance, but cut gross margin estimates.
In a client note, Goldman Sachs analyst Cheryl Tang said the company's lower margin estimate _ 23 to 28 percent from between 26 and 31 percent _ signal cost pressures throughout the year.
"We believe the management's reduction of gross margin guidance may disappoint investors," Tang said, maintaining her "Neutral" rating and $28 price target.
Oppenheimer & Co. analyst Sam Dubinsky also singled out the company's lower margin estimates, saying rising polysilicon costs threaten to offset the company's higher revenue guidance.
Dubinsky kept his "Perform" rating on LDK. On Monday, the stock closed at $37.46.
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