2 Solar Stocks Light Up Trading Screens After Earnings

Suntech Power Holdings Co. Ltd. (NYSE:STP) reported its results for the third quarter. The company reported a loss of $116.4 million (loss of 64 cents per diluted share). Profit was $33.1 million (18 cents per share) in the same quarter a year earlier. Revenue rose 9% to $809.8 million from the year earlier quarter. STP fell short of the mean analyst estimate of a loss of 21 cents per share. It beat the average revenue estimate of $774.6 million.

“Suntech’s diverse global sales channels combined with customer preference for high performance, bankable products enabled Suntech to meet our third quarter shipment and margin guidance, despite the challenging market conditions,” said Dr. Shi, Suntech’s chairman and CEO.

Competitors to Watch: Trina Solar Limited (NYSE:TSL), Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE), First Solar, Inc. (NASDAQ:FSLR), JA Solar Hldgs. Co., Ltd. (NASDAQ:JASO), SunPower Corporation (NASDAQ:SPWRA), LDK Solar Co., Ltd (NYSE:LDK), China Sunergy Co., Ltd. (NASDAQ:CSUN), JinkoSolar Holding Co., Ltd. (NYSE:JKS), and Hanwha Solarone Co Ltd (HSOL).

JA Solar Holdings, Co., Ltd. (NASDAQ:JASO) swung to a loss in the third quarter, missing analysts’ forecast.  Reported a loss of $59 million (36 cents per diluted share) in the quarter. The semiconductor company had net income of $80.8 million or 49 cents per share in the year earlier quarter. Revenue fell 31.6% to $388 million from the year earlier quarter. JASO fell short of the mean analyst estimate of a loss of 2 cents per share. It beat the average revenue estimate of $379.2 million.

Dr. Peng Fang, CEO of JA Solar, commented, “This continues to be a challenging period for the solar industry, but we are heartened that JA Solar has been able to retain customers and maintain strong market share in the third quarter. While ongoing macro-economic and industry volatility continued to restrain demand, overall product shipments were at the low end of our guidance at 445MW. With the European debt crisis limiting the amount of financing available for solar power projects, we did not see the anticipated demand recovery in major European markets during the month of September. However, JA Solar performed relatively well as customers increasingly relied on top tier suppliers with strong liquidity. In the current market environment, where customers have more choices of products and suppliers, we have seen customers shifting more of their orders to suppliers who can deliver high power products together with a strong brand, a reputation for quality, and a healthy balance sheet. JA Solar’s suite of industry-leading high-performance products gives us a clear advantage and this is particularly evident in our module shipments for the third quarter, which grew by more than 45% sequentially. Our gross margin for the quarter has been impacted by an inventory provision of US$21.7 million. Excluding this inventory provision, gross margin would have been positive.”

Competitors to Watch: Trina Solar Limited (NYSE:TSL), Suntech Power Hldgs. Co., Ltd. (NYSE:STP), LDK Solar Co., Ltd (NYSE:LDK), ReneSola Ltd. (NYSE:SOL), JinkoSolar Holding Co., Ltd. (NYSE:JKS), SunPower Corporation (NASDAQ:SPWRA), Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE), China Sunergy Co., Ltd. (NASDAQ:CSUN), and First Solar, Inc. (NASDAQ:FSLR).