Along with Solarfun Power (SOLF), which reported strong earnings yesterday, the three Chinese solar companies were the biggest gainers in the industry in early afternoon trading. Solarfun was up 5.25% on massive volume -- 6.83 million shares versus an average of 1.06 million shares.
Third-quarter earnings in the sector have highlighted the extent to which Chinese solar players have used their pricing advantage to quickly gain market share on Western competitors. Company executives emphasized that these earnings have shown the extent to which they are establishing their brands as global competitors.
Analysts expected today's results to reinforce the strong outlook for the fourth quarter and full year. Trina upped its expected shipment target for the full year shipments to be between 380 MW and 400 MW, compared to its earlier guidance of between 350 MW to 400 MW, representing an increase of 89.1% to 99.0% from 2008.
There was some disappointing news in the earnings for both firms, such as the Suntech earnings dip of 30%. Trina experienced a net revenue drop of 14.1% to $249.7 million, but also reiterated an expected 15%-20% manufacturing costs drop.Regardless, the market's response was anything but focused on these lower figures, as the defiance of Street expectations and optimistic outlook for near-term shipments continue to fuel investor interest. The solar industry may be under heat in this earnings period, but the Chinese companies continue to generate it.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV