Thursday, November 1, 2012

Solar Surges: LDK, STP, JASO, CSIQ Rise Despite Deep Losses

Investors seem to be calling a bottom, at least for the moment, in the fortunes of solar energy technology providers, with the stocks rising nicely despite a slew of earnings this morning that fell short of expectations.

The combination of terrible results that were, however, somewhat foreshadowed by preannouncements, plus “guidance” that in many cases agrees with the Street’s diminished expectations, and the beaten-down state of the stocks, may be acting as a relief of sorts to some investors, suggesting to them the worst about the industry is on the table and priced in the stocks.�

SunTech Power Holdings (STP), based in Wuxi, China, reported revenue of$809.8 million and a loss of 64 cents a share. The revenue result was better than the expected $776 million,�but the net loss was worse than the 26 cents the Street was looking for. For the year, the company cut its outlook to a range of $3 billion to $3.1 billion in revenue from a prior range of $3.2 billion to $3.4 billion. That is in line with the $3.1 billion analysts have been modeling.�

STP shares are up 39 cents, or almost 18%, at�$2.62.

Zhabei, China-based JA Solar (JASO) also beat revenue estimates for its Q3, reporting $388 million versus �$379 million expected, but reported a net loss of 36 cents, well below the 1-cent-per-share expected. The company cut its full-year solar cell and module shipment forecast to 1.6 gigawatts from a prior 1.8-gigawatt forecast.

JASO stock is up 3 cents, or 2%, at $1.55.

Canadian Solar (CSIQ), based in�Kitchener, Ontario, reported revenue of $499 million, above the $496 million expected, but delivered a net loss of $1.02 per share versus a consensus estimate for a 39-cent loss. The company reiterated its year shipment view, but also said it would cut its Q4 capital expenditure forecast by about a third.�

Canadian Solar shares are up 21 cents, almost 10%, at $2.41.�

And Xinyu, China-based LDK Solar (LDK) turned in revenue and earnings below expectations, reporting $472 million and a net loss of 87 cents a share, worse than the $499 million and 46-cent loss analysts were expecting. The company forecast Q4 revenue in a range of $440 million to $520 million, below the average $507 million estimate.�

LDK shares are up 19 cents, almost 7%, at $3.02.

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