Citi: First Look At ESLR 4Q
March 10, 2011 9:49 AM
Evergreen Solar (NASDAQ: ESLR) has announced the big write-down at Devens “and is now pursuing what we believe to be the optimal strategy as a pure wafer maker in what should be a generally tighter poly environment the next several years, and there remains potential for fundamental value here,” Citi reports.
“That said, monetization of this wafer technology via a JV and/or strategic investment continues to hinge on fully proving its standard sized wafers,” Citi writes.
“EPS (non-GAAP, ex one timers) of ($0.83) was below our ($0.67) estimate due to higher interest, but in line with recent negative top line preannouncement.
“Additionally, it announced significant charges related to its decision to close its Devens mfg facility in its transformation to being a wafer company. The sum of these charges was ~$380MM relative to our ~$340MM model and leaves cash at ~$2.00 relative to our ~$2.00 model.”
Evergreen Solar closed Wednesday at $2.00.
