Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Trina Solar Limited (ADR) (TSL), Yingli Green Energy Hold. Co. Ltd. (ADR) (YGE), Canadian Solar Inc. (CSIQ): This Week in Solar

It’s been a wild week for solar stocks, driven by an earnings season that’s seen everything from blowouts to complete duds. The following chart shows how some of the major newsmakers shook out — in some cases, even those bouncing back later in the week ended down.

FSLR Total Return Price Chart

FSLR Total Return Price data by YCharts

I’ll cover the major earnings news of the week and what investors should take away as earnings season moves forward.

Chinese earnings pick up steam
Chinese manufacturers began announcing preliminary results, and they’re beginning to improve. Trina Solar Limited (ADR) (NYSE:TSL) said shipments would be 630 MW to 660 MW, which was 130 MW above previous guidance. Gross margin of 11% to 12% was also well above the middle single guidance given last quarter.

Trina Solar Limited (ADR) (NYSE:TSL)Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) saw similar improvement, with increasing gross margin in a range of 11% to 12%, and said shipments will grow 23% to 24% sequentially, from a previous guidance of percentage growth in the low to mid-teens.

Trina Solar Limited (ADR) (NYSE:TSL) and Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) offered guidance figures, and we still don’t know what the bottom line looked like, but Canadian Solar Inc. (NASDAQ:CSIQ) did report its earnings for the quarter, seeing similar results. The company shipped 455 MW, generated a gross margin of 12.8%, and lost $12.6 million, or $0.29 per share.

Conditions are clearly improving in the Chinese manufacturer market as seen by improving margins across the board and higher shipments. What these companies aren’t reporting is a profit at this point. If Chinese demand picks up, margins improve in Europe, and Japan continues to have high sales prices, then we may see companies with low debt loads come close to a profit later this year.

First Solar and SunEdison report duds
The big losers of the week were First Solar, Inc. (NASDAQ:FSLR) and Sunedison Inc (NYSE:SUNE), which reported disappointing earnings. First Solar, Inc. (NASDAQ:FSLR)’s results show a particularly sharp decline in demand despite the solar industry’s strength this year. The company’s pipeline of solar projects is down so far this year, and with little to no demand outside its systems business, earnings are falling. To make matters worse, cost per watt of $0.67 is similar to the sale price of some Chinese modules, but instead of an increasing utilization rate we saw at Trina Solar Limited (ADR) (NYSE:TSL), Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE), and Canadian Solar Inc. (NASDAQ:CSIQ), First Solar, Inc. (NASDAQ:FSLR)’s utilization is falling.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.