Solars Green Following Sunny Reports, Outlook (SPWRA) (YGE) (LDK) (STP)
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Solar stocks are on the move today, following a solid fourth quarter earnings report out of Yingli Green Energy (NYSE: YGE) today and SunPower (Nasdaq: SPWRA).
But it was more than just a quarterly "beat" by the two solar companies. Both gave a pretty positive outlook into FY11. SunPower is expecting Q111 EPS of $0.15 - $0.21 on revs of $475 - $525 million, versus the consensus EPS of $0.16 on revs of $488.61 million. For FY11, SPWRA is looking for EPS of $2.00 - $2.20 with revs of $2.80 - $2.95 billion, compared to the consensus EPS of $1.87 and $2.77 billion in revs.
Yingli gave more of a shipment outlook. They have an estimated FY11 shipment target of 1,700 - 1,750 megawatts, which would be a 60.1% - 64.8% jump from FY10.
The news is setting the pace for companies like Suntech Power (NYSE:
STP), JA Solar (Nasdaq: JASO), First Solar (Nasdaq: FSLR), and LDK
(NYSE: LDK), all of which have yet to report their quarterly earnings.
Solar investors may be worrying about subsidies, which is a big part of bearing the cost to implement an expensive technology. Europe has held strong with their subsidies through 2010, but may major solar consuming countries, like Germany and Italy, have hinted at a reduction in subsidies starting this year. Recent reports have Germany's Environment Ministry cutting subsidies six-months earlier than originally planned.
Still, other emerging markets, such as China and Brazil, may make the move to begin taking on solar projects, as their populations and economies grow, requiring more energy consumption.
Today though, investors are bullish on the solar sector:
But it was more than just a quarterly "beat" by the two solar companies. Both gave a pretty positive outlook into FY11. SunPower is expecting Q111 EPS of $0.15 - $0.21 on revs of $475 - $525 million, versus the consensus EPS of $0.16 on revs of $488.61 million. For FY11, SPWRA is looking for EPS of $2.00 - $2.20 with revs of $2.80 - $2.95 billion, compared to the consensus EPS of $1.87 and $2.77 billion in revs.
Yingli gave more of a shipment outlook. They have an estimated FY11 shipment target of 1,700 - 1,750 megawatts, which would be a 60.1% - 64.8% jump from FY10.
The news is setting the pace for companies like Suntech Power (NYSE:
STP), JA Solar (Nasdaq: JASO), First Solar (Nasdaq: FSLR), and LDK
(NYSE: LDK), all of which have yet to report their quarterly earnings.
Solar investors may be worrying about subsidies, which is a big part of bearing the cost to implement an expensive technology. Europe has held strong with their subsidies through 2010, but may major solar consuming countries, like Germany and Italy, have hinted at a reduction in subsidies starting this year. Recent reports have Germany's Environment Ministry cutting subsidies six-months earlier than originally planned.
Still, other emerging markets, such as China and Brazil, may make the move to begin taking on solar projects, as their populations and economies grow, requiring more energy consumption.
Today though, investors are bullish on the solar sector:
- First Solar is 0.37% better;
- JA Solar is 2.6% higher;
- Suntech Power is trading 3.9% stronger;
- SunPower is 8.4% better;
- Yingli Green is up 5.7% on the session; and
- LDK looks 2.4% better.
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