Less Disappointing Disappointment at MEMC (WFR)

Posted in pre-market 
November 2nd, 2010

MEMC Electronic Materials Inc. (NYSE: WFR) posted poor earnings last night and withdrew from offering up guidance.  The company reported earnings of $17.6 million, or $0.08 EPS.  Before items the figure was $0.10 EPS.  Revenues were up about 60% at $503.1  million.

Thomson Reuters had consensus estimates of $0.13 EPS $531.3 million in revenues.

Withdrawing guidance took shares lower last night by more than 10% at the worst part of the after-hours trading session.  Here is the thing to consider… MEMC is so battered even after a recovery rally that bad news may be good news here.  Shares are now down ‘only 2.5% at $12.36 on more than 1.5 million shares with about 40 minutes until the market opens for trading.

Sometimes bad news is not so bad in the grand scheme of things, even if the headlines and implications remain challenged at best.

The 52-week range is $9.19 to $16.99 and average daily volume is roughly 6 million shares per day.

JON C. OGG

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