NEW YORK ( TheStreet) -- The general theme for solar earnings season is set. The soaring demand levels across the solar supply chain in 2010 is the main thrust for what is expected to be a healthy earnings season for solar stocks. Even the euro depreciation fears -- which crippled the sector for more than a month and has the potential to present some negative headlines in the second quarter reports - have died down and solar demand again become the big mover for these stocks which have rallied over the past month. This earnings season is, from at least one important respect, similar to the year-end 2009 earnings from the solar sector. Earnings is always as much about the outlook as it is about the printed earnings numbers, however, in that year-end 2009 period, outlook took precedence over earnings, with analysts and investors zeroing in on fears that the second half of 2010 would cripple solar as Germany looked to reduce feed-in tariffs. The German plan was delayed, and the fears of a demand depression in the second half of 2010 were delayed along with the German political tangle. In the end, though, those fears have simply been pushed back to 2011.
The shifting sentiment of fear that clings to the solar sector like an albatross with silicon wings hasn't let go its grip. This means that as solar earnings start to be released, and some impressive numbers hit the headlines, analysts and investors may be more focused on visibility on 2011 demand, and whether or not oversupply is set to hit the boom and bust solar industry. This dilemma for solar investors isn't new, and it's a theme that defines the solar sector, but can also obscure the very different challenges of individual solar companies. Take the U.S. solar stocks, for example. The first two reports are on deck for after the market close Thursday, from First Solar ( FSLR) and MEMC Electronic Materials ( WFR). Evergreen Solar ( ESLR) will report next Tuesday.