ReneSola (SOL), a solar wafer manufacturer, blew away Q2: EPS was $0.38 vs. $0.32 consensus and revenue was $173 million vs. $141 million consensus.
SOL also raised FY08 revenue guidance to $640M – $670M from $570M – $590M.
AmTech’s John Hardy thinks the results are great news for other players in the solar industry:
- Wafer ASPs improved in Q208 2% q/q from $2.55 to $2.60 signaling continued strong demand from cell and module producers. SOL also reported they do not see any significant ASP degradation in 2H08 or 1H09, which is an incremental positive relative to demand concerns associated with Spain. This is a positive for LDK Solar (LDK) (though already reported very strong results last week and this strength has likely been priced in).
- SOL reported a 6% increase in feedstock costs implying continued supply/demand imbalance for poly in Q208. In fact, SOL expects poly costs to remain tight for several quarters. This is a positive for MEMC (WFR) as they continue to supplement contract strength with spot sales.
- SOL announced they are increasing supply to Suntech Power (STP). The companies renegotiated their LT contract from 510MW over 5 years to 1.5GW over 8.5 years. This includes an incremental 20MW in 2H08. A 20MW increase equates to a 6% increase on our total estimated 2H08 STP production number of 320MW. Incremental positive for STP.
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