Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Solar panel manufacturer LDK Solar
So what: LDK now expects revenue of $870 million to $910 million in the fourth quarter, higher than the $710 million to $750 million of its previous forecast. In 2011, expectations are now for $3.5 billion to $3.7 billion of revenue, blowing away analyst estimates of $2.74 billion. Shipment, in-house production, and gross margins are all expected to be higher than previously forecast.
Now what: The solar sector was beaten down in 2010 as analysts worried about where demand was going to come from. LDK Solar apparently isn't having any problems finding buyers for its panels, pulling the entire sector higher as a result. After today's news I'm going to stay bullish on solar. I think LDK has more room to run, along with Suntech Power
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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