Solar Shares in the Spotlight Again (ENER, SOL, STP, TAN, SPWRA)

Solar is back, partly, or at least the news indicates this on some of the players.   Energy Conversion Devices Inc. (NASDAQ:ENER) is a US maker of a flexible, thin-film solar PV panel that hit its peak in July of 2008, and has been sliding ever since. That slide in earnings continued today as the company reported a first-quarter loss of -$0.64 EPS.

Chinese solar maker Renesola Ltd. (NYSE: SOL) also reported earnings this morning and Suntech Power Holdings Co. Ltd. (NYSE: STP), another China-based firm, announced preliminary results which include higher revenues in the first quarter and slightly higher gross margins. Suntech is the third largest holding in the Claymore/MAC Global Solar Energy ETF (NYSE:TAN); and we are seeing an analyst move SunPower Corp. (NASDAQ: SPWRA) marginally.

Energy Convesion Devices shares are trading higher this morning because its quarterly EPS loss was less than the expected -$0.75. Included in the company’s loss was a $358 million non-cash impairment charge. ECD wrote down property, plant, and equipment by $321 million and goodwill and other intangibles by $37 million.  After an hour of trading, shares are up 10% at $6.49.  The company’s president/CEO said that the impairment charge reflects “changed market conditions,” such as “delayed timing of anticipated revenue and profit from some of the company’s long-lived assets.” At the same time, he believes that the company is “turning the corner and … enhancing our competitive position.”

Renesolar shipped more than 242 megawatts of solar PV products in the quarter, and blew past revenue estimates of $189 million, posting sales of $206.6 million. Earnings per ADS reached $0.14, a nickel better than analysts’ estimates of $0.09. The company generally expects to keep reducing its costs during 2010 and expects demand for polysilicon wafers to be strong.

Suntech echoes Renesolar’s report, projecting revenues in the $580-$590 million range and gross margins of 19%-20%. The company expects a foreign exchange loss of $24-$25 million and a hedging gain of $2-$3 million.

Renesolar shares are up more than 11% and Suntech shares are up more than 9% in early trading today. The Global Solar Energy ETF is also up more than 4%.

Elsewhere in the solar sector, shares of SunPower Corp. (NASDAQ: SPWRA) were raised “unenthusiastically” to Hold from Sell as the stock is now trading below the target of $15 and as the stock is close to 1-times book value of $14.26. Shares are up 4.6% at $15.00 after an hour of trading.

PAUL AUSICK