Solar Earnings On Deck (JASO, LDK, CSIQ, YGE)

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This week is an extremely important week for solar stocks and alternative energy stocks. JA Solar Holdings Co. Ltd. (NASDAQ: JASO), LDK Solar Co.Ltd. (NYSE: LDK), Canadian Solar Inc. (NASDAQ: CSIQ), and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) are all up on the earnings deck this week.

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) is the first of the solar companies to watch.  Monday’s estimates from First Call are $0.10 EPS on $146.6 million in revenues.  The next quarter estimates are $0.15 EPS and $179.9 million, while fiscal Dec-2008 are $0.85 EPS on $984.4 million.  JA Solar is Chinese and it is thought of by many as one of the cheapest cost producers with some of the closest and firmest supplies of silicon to make solar pv cells.  This has been a monster performer since coming public early last year and many consider it one of the cheapest of the solar stocks.

LDK Solar Co.Ltd. (NYSE: LDK)
is also set to report earnings Monday, and this has been one of the more controversial names in solar power for traders.  It is still down more than 50% from its highs, and is now up almost 100% from its lows since right before we covered this one securing silicon contracts and having its orders fully booked up.  We already gave guidance for its targets but the estimates for this quarter are $0.39 EPS on $217.29 million in revenues.

On Tuesday, we’ll see earnings out of Canadian Solar Inc. (NASDAQ: CSIQ).  This solar player’s estimates from First Call are $0.31 EPS on $151.88 million in revenues.  Next quarter estimates are $0.34 EPS on $167.6 million in revenues, and the fiscal  Dec-2008 estimates are $1.60 EPS on $730.7 million in revenues.  This one is up huge by some 400% or more since its September 2007 lows.

On Thursday morning, we’ll see earnings out of Yingli Green Energy Holding Co. Ltd. (NYSE: YGE).  First Call has estimates pegged at $1.33 EPS on $1.47 Billion.  Estimates for next quarter are $1.38 EPS on $1.5 Billion in revenues and fiscal Dec-2008 estimates are $6.54 EPS on $6.84 Billion in revenues.

As a reminder, many estimates will have changed by the time the Tuesday and Thursday report gets here.  Also, with the performance that has been seen in these names you have to understand that for any real rally to be sustained based upon the actual earnings report that these have to "beat earnings targets and raise guidance."  Those that don’t beat will likely either see profit taking or just outright short selling.

Jon C. Ogg
May 11, 2008