Solar Co.'s to See Lackluster Profits as Prices Plummet -IHS (STP) (LDK) (TSL)
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Solar stocks, like virtually every other stock in the U.S. Thursday, are having a rough session.
New data from IHS's (NYSE: IHS) iSuppli this morning has the firm forecasting cloudy skies in the sectors near-term future. IHS contends, despite rising installations, plunging prices for photovoltaic modules will result in zero revenue growth in 2011.
For the first-half of 2011, 6.6-GW of solar installations were made worldwide. The number is expected to accelerate in the second-half to 14.7-GW, amounting to 21.2-GW of installations on the year. About 17.6-GW of installations were made in 2010.
IHS says price declines were the result of two major solar markets: German and Italy. PV prices were too high in Germany, leading many to delay installations further. Coincidentally, since PV prices have declined so dramatically, Germans are waiting for the "bottom of the market" before making a move on any further installations. In Italy, a new energy policy caused uncertainty for investors.
IHS notes the situations in both countries have stabilized.
The news may not come as a shock to some. Earlier in the week, Trina Solar (NYSE: TSL) cut is second-quarter PV shipment outlook, though the company reiterated its fiscal 2011 outlook based on back-half demand.
Many of the major solars should be reporting in the next couple weeks, including SunPower (Nasdaq: SPWRA), SunTech (NYSE: STP), Yingli (NYSE: YGE), Trina, LDK (NYSE: LDK), and JA Solar (Nasdaq: JASO), among others. GT Solar (Nasdaq: SOLR) recently gave its first-quarter earnings report, possibly bolstering some confidence in the segment.
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New data from IHS's (NYSE: IHS) iSuppli this morning has the firm forecasting cloudy skies in the sectors near-term future. IHS contends, despite rising installations, plunging prices for photovoltaic modules will result in zero revenue growth in 2011.
For the first-half of 2011, 6.6-GW of solar installations were made worldwide. The number is expected to accelerate in the second-half to 14.7-GW, amounting to 21.2-GW of installations on the year. About 17.6-GW of installations were made in 2010.
IHS says price declines were the result of two major solar markets: German and Italy. PV prices were too high in Germany, leading many to delay installations further. Coincidentally, since PV prices have declined so dramatically, Germans are waiting for the "bottom of the market" before making a move on any further installations. In Italy, a new energy policy caused uncertainty for investors.
IHS notes the situations in both countries have stabilized.
The news may not come as a shock to some. Earlier in the week, Trina Solar (NYSE: TSL) cut is second-quarter PV shipment outlook, though the company reiterated its fiscal 2011 outlook based on back-half demand.
Many of the major solars should be reporting in the next couple weeks, including SunPower (Nasdaq: SPWRA), SunTech (NYSE: STP), Yingli (NYSE: YGE), Trina, LDK (NYSE: LDK), and JA Solar (Nasdaq: JASO), among others. GT Solar (Nasdaq: SOLR) recently gave its first-quarter earnings report, possibly bolstering some confidence in the segment.
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