J.P. Morgan Comments On MEMC Earnings

According to J.P. Morgan, MEMC Electronic Materials WFR reported C1Q11 GAAP rev/EPS of $736mn/($0.02) vs. our ests. of $604mn/$0.08. J.P. Morgan said that excluding the impact of one-time legal and Japanese earthquake related charges, EPS would have been $0.05. “Better overall revenue, in solar wafers and particularly at SunEdison, was offset by lower than expected revenue in semi wafers and lower margins in the semi wafer business & SunEdison. Opex was higher than expected, but was largely offset by a tax benefit in the quarter that added $0.08 to EPS relative to our expectations. With respect to C11 guidance, MEMC reiterated its original ranges & although the year got off to a slow start, increased expectation of higher SunEdison revenue seems to be the reason for maintaining C11 guidance.” MEMC Electronic Materials closed yesterday at $11.36.