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Solar Earnings Preview: Can the Sector Bounce Back?

Eric Dutram

Solar stocks are in focus this earnings season, as the space continues to struggle. Earnings estimate revisions haven’t been too favorable for this group and the solar industry is now looking at a bottom 50% industry rank too.

However, not every company in this group is facing the same issues and you need to know which are poised to face the most pressure this earnings season. In particular, we take a closer look at two of the bigger names in this segment for a few more clues about this sector’s near term direction…

JA Solar (JASO)

Shares of JASO have been in a relatively narrow range for years, even though the company does have a relatively solid track record in earnings season. The problem here is that JASO doesn’t have any growth when it comes to earnings estimates, so it is hard to like a company in a growth sector that isn’t improving earnings. The company was just bumped up to ‘hold’ territory so that is a plus, while its fundamental score of ‘A’ is impressive, so it isn’t all bad for JASO.

JA SOLAR HOLDGS Price, Consensus and EPS Surprise

JA SOLAR HOLDGS Price, Consensus and EPS Surprise | JA SOLAR HOLDGS Quote

JA Solar reports before the bell on 8/17

 

Canadian Solar (CSIQ)

Canadian Solar has fallen on tougher times heading into this earnings season, as the stock has a rank of ‘sell’ while it was actually just downgraded into this territory. Plus, with a negative earnings ESP, the outlook isn’t too promising, even if it does have an ‘A’ VGM score. So while the company does have a nice history of beating estimates, a sluggish estimate trend makes this a difficult one to like this earnings season as well.

CANADIAN SOLAR Price, Consensus and EPS Surprise

CANADIAN SOLAR Price, Consensus and EPS Surprise | CANADIAN SOLAR Quote

Canadian Solar reports before the bell on 8/19.

 

For more in-depth analysis of these companies, as well as a brief look at JKS and TSL, make sure to watch our short video on the topic. And for additional insights on trading earnings reports, check out our podcast below:


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JA SOLAR HOLDGS (JASO): Free Stock Analysis Report
 
TRINA SOLAR LTD (TSL): Free Stock Analysis Report
 
JINKOSOLAR HLDG (JKS): Free Stock Analysis Report
 
CANADIAN SOLAR (CSIQ): Free Stock Analysis Report
 
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