MEMC Electronics beat analyst estimates after the bell today reporting an EPS of .03 (estimates called for break even) on revenues of $283 million (estimates called for $231 million), but the stock is off after hours. This is another situation where analysts came in with very low expectations, so beating doesn’t necessarily mean the company is in great shape.
MEMC’s profits plunged 96% compared to the year ago quarter, while revenues plunged 47%, so not … Read the rest
SunPower (SPWRA) has long lagged its solar competitors in stock performance this year and remains submerged below the 50 and 200 day moving averages. Tomorrow, the tide may turn. SunPower just smashed analyst earnings estimates after the bell by reporting an an EPS number of .24/share, beating estimates by .10. Revenues also came in higher than expectations at 298 million. The stock is responding well after hours, soaring about 20%.
Let’s keep it in perspective … Read the rest
First Solar (FSLR) is entering the French market with a splash, announcing this morning a partnership with French utility EDF Energies Nouvelles to build France’s largest solar panel manufacturing plant with annual capacity of more than 100MW of thin film panels.
EDF will finance half of the $126 million cost of the plant in exchange for the plant’s output for the next 10 years. Now that’s what I call locking up supply! No site has … Read the rest
Energy Conversion Devices just announced the purchase of Solar Integrated Technologies. Energy Conversion Devices paid $16.3 million to buy the PV roofing system manufacturer and installer and assume the company’s debt. They will pay about .11 per Solar Integrated Technology share. Energy Conversion Devices plans to fund the purchase using existing corporate funds.
In a press release, executives from both companies commented on the deal:
Mark Morelli, ECD’s president and chief executive officer said, “The … Read the rest
Yingli Green Energy just made some announcements about its company plans for the China market. First, Yingli has formed a strategic alliance with Guangdong Nuclear Power Holding Co. The companies will work together to find opportunities for on-grid solar projects, both in China and in other countries.
Yingli also announced the creation of two new joint ventures, Hainan Yingli and Hainan Green Islands Power Company Limited. Hainan Yingli is a joint venture between Yingli Green … Read the rest
Suntech Power (STP) is undoubtedly on a roll with agreements in place for large solar projects. Just one one month ago the company announced agreements with several local Chinese governments to produce 1.8GW of solar power which are contingent upon permits and other red tape. This morning, the company is announcing an agreement with China Huadian to develop 500MW of utility scale and commercial roof top solar projects in the Jiangsu and Shanghai provinces over … Read the rest
Hat tip to StreetInsider.com for the following comments out of FBR Capital Markets which basically said the run up in solar stocks today on the China solar subsidy news is an overreaction.
FBR said the “Golden Sun Program” will not save solar stocks entering earnings season and that the translated version of the press release issued by CMF suggests that the central government in China decided to support financially any electricity generated by solar PV … Read the rest
Wedbush Morgan was out with an article in Barrons yesterday highlighting the challenges that remain in the solar market as solar earnings kick off next week. They believe that 2nd half estimates may be too optimistic and earnings will show the negative impact of rapidly declining average selling prices, inventory write downs and cancellations/delays of customer orders. While they generally agree that the drop in average selling prices may spur demand to a degree, the … Read the rest
The Chinese government just announced it will offer significant new subsidies to solar power manufacturers. According to Reuters, the government will cover 50 percent of investments for solar power projects and necessary power transmission and distribution projects. There are some qualifications for companies to receive the subsidy: The projects must generate at least 300 KW at peak power, must be maintained for 20 years and must be completed in a year. PV systems installed in … Read the rest
Yesterday, Renesola (SOL) got a bit of a pop higher on news it has signed letters of intent for 505MW in government solar contracts. The first is a potential deal with the Yancheng city government for a 500MW on grid solar project consisting of mainly ground mounted systems and 10MW of rooftop installations to be built over the course of six years. The second deal is a 5MW rooftop solar project with the Panzhihua … Read the rest