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Ahead Of The Bell: Evergreen Solar Shares Fall

The Associated Press

NEW YORK (AP) — Evergreen Solar Inc. shares fell in Friday premarket trading after the company posted a first-quarter loss on a large write-down.

Shares dropped 37 cents, or 15 percent, to $2.06 ahead of market open. The stock has ranged from $1 to $12.64 over the past year.

Following the close of the market on Thursday, Evergreen said its first-quarter sales more than doubled from a year earlier, but reported a loss of $64.3 million, or 40 cents per share.

The quarter's results include a charge of $43.9 million to write off a loan receivable and interest, $3.5 million of startup costs at a plant, and $1.8 million related to closing a pilot facility.

Wedbush Morgan analyst Al Kaschalk said the company's short-term financing requirements, lack of visibility and challenging environment prompted him to suspend his 12-month price target assignment. He maintained a "Hold" rating.

Thomas Weisel Partners analyst Jeff Osborne also cited the weak financing environment, along with margin pressures and slow industry growth, as reasons lowering his 2009 estimate to a loss of 33 cents per share from a profit of a penny per share. Osborne also reduced his share price target to $2.50 from $3.