FIRST SOLAR (FSLR) 121.18 $0.05 (0.04%) 06:40PM (15 mins delay)

Are U.S. Solar Companies Losing Market Share to Their Chinese Competitors?

Oct 30, 2009 - 8:10 AM EDT

Kelvin Schulle submits:

First Solar (FSLR) reported Q3 earnings with revenue down from $520M of Q2 to $480M, however the company beat on EPS by 0.05c margin. The company raised 2009 guidance to $1.975B to $2.025B from previously announced numbers.

One positive movement in the solar sector is that inventory is getting lower according to FSLR's CEO. The inventory depletion is across the whole solar sector, which is positive for the rest of the industry. For the rebate program, it is not working as expected according to the company. It is likely Chinese solar names are gaining market shares in Europe because company like Trina Solar (TSL) and Solarfun Power (SOLF) raised shipment guidance for Q3 a few weeks back. The cost base is much more competitive for Asian solar companies. Overall First Solar presented a mixed earnings report (conference call transcript here).

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Source: Seeking Alpha (Oct 30, 2009 - 8:10 AM EDT)