NEW YORK (TheStreet) -- Semiconductor SunEdison (SUNE) was tumbling during Thursday's trading session after the company projected a soft guidance revision for the fourth quarter. By late morning, shares had fallen 6.7% to $11.93.
The St. Peters, Miss.-based business lowered its revenue forecast for the fourth quarter ending in December to between $205 million and $215 million, down from a previous range of $220 million to $230 million. The forecast is approximately a third of the $672 million in sales the company earned in its third quarter ended September.
"Due to continued market weakness, unit volumes in our semiconductor business are now expected to be below prior expectations for the fourth quarter. Pricing, however, remains approximately flat and we believe our market share remains consistent with the past several quarters," the company said in a statement.
The tech company is expected to release fourth-quarter numbers on Feb. 3.
In a separate announcement, SunEdison said it plans to refinance its capital structure through the offering of $800 million convertible senior notes, half of which are due in 2018 and the remainder in 2021. With the proceeds, it intends to redeem $550 million senior notes due 2019 and repay amounts owed under its $200 million second lien term loan.
In response, UBS reiterated its "buy" rating and 12-month price target of $13. Likewise, Credit Suisse kept an "outperform" rating and target price of $14.
TheStreet Ratings team rates SunEdison Inc as a Hold with a ratings score of C-. The team has this to say about its recommendation:
"We rate SunEdison Inc (SUNE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."