Thursday, August 2, 2012

Solar Stocks Volatile On First Solar’s Earnings – FSLR, YGE, TSL, JKS, SPWR, SOL

Shares of solar wafer makers are trading mixed on Thursday with First Solar, Inc.(NASDAQ:FSLR) is leading the sector to north after the company posted solid earnings and lifted its earnings outlook. Although, the entire sector is also moving higher but couple of stocks have reversed early gains and hitting record lows including Trina Solar Limited (ADR)(NYSE:TSL) & Yingli Green Energy Hold. Co. Ltd. (ADR)(NYSE:YGE)

NEW YORK - Shares in First Solar, Inc.(NASDAQ:FSLR) surged in early trades on Wall Street enthused by its quarterly results reported on Wednesday that beat analyst estimates and raised its forecast for 2012.

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Its shares were trading up more than 25 percent at $18.53 at 10.29 a.m., New York time. Its shares have lost 87.5 percent of their value over the past one year, with difficult conditions prevailing for the solar panels industry.

Competition in the sector led to a glut in solar panels driving down prices and impacting its margins. First Solar, which once sold the cheapest solar panels, no longer holds that advantage.

For the quarter to June the company earned $111 million or $1.27 per share and increased its 2012 revenue forecast to between $3.6 billion and $3.9 billion. A rise in construction activity led to renewed demand, especially for energy efficient lighting systems.

First Solar is fighting back the competition as well as falling prices by turning its attention to large-scale solar projects or solar farms for large utilities, a move which has met with approval from the analyst community, some of whom have upgraded the stock to `Buy’ from `Hold’.

How Should Investors Trade The Sector Now, Get Trend Analysis

Shares of TSL are down 7.20% to new multi year low of $4.26, well off session high of $4.73. Yingli Green Energy Hold. Co. Ltd. (ADR)(NYSE:YGE) turned lower and was recently trading lower by 10% at new low of $1.50, erasing early gains. JinkoSolar Holding Co., Ltd.(NYSE:JKS) has erased 10% from session high and was down 7% to $2.10 after creating multi year low of $2.06.

Among the notable gainers, SunPower Corporation(NASDAQ:SPWR) rose 6.40% to $4.02 and ReneSola Ltd. (ADR)(NYSE:SOL) added 4.30% to $4.30.

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