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Solar earnings may show demand fears are overblown

Tue, 02/15/2011 - 6:27pm
Reuters

FRANKFURT/LOS ANGELES (Reuters) - Solar power companies are likely to surprise investors this earnings season with bright outlooks for 2011 as Italy and the United States ratchet up demand for panels following a cut in government support in the world's largest solar market, Germany.

Fears of a deep regulatory overhaul in Europe have overshadowed solar stocks in recent months, pressuring valuations as investors fretted that subsidy cuts in Germany, France and other markets would cause an oversupply of solar panels that would send panel prices down dramatically and hurt manufacturers' profits.

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