Speaking of solar energy stocks, have you seen the earnings lately? Unbelievable growth that’s still beating the Street. If there ever was a clear recipe for capital appreciation on the stock market, these solar energy companies are following it.
How about JA Solar Holdings Co., Ltd. (NASDAQ/JASO)? This company just announced that its third quarter 2007 revenues were just over one-hundred and thirteen million dollars, up significantly from revenues of around thirty-three million dollars in the third quarter of 2006, and up from strongly from revenues of sixty-one million dollars generated in the most recent second quarter of 2007.
Net income in the third quarter was just over twenty-one million dollars, as compared to net income of $0.55 million in the third quarter of 2006. That’s a 40-fold gain in earnings.
How about another favorite of this column, First Solar, Inc. (NADSAQ/FSLR)? After reporting its third quarter numbers, the stock appreciated $57.00 per share, or about 34% in just one day.
According to First Solar, its quarterly revenues grew to one- hundred and fifty-nine million dollars, up from revenues of more than seventy-seven million dollars generated in the second quarter of fiscal 2007, and up from comparable revenues of almost forty- one million dollars generated in the third quarter of 2006.
Net income in the latest quarter for this company was an impressive forty-six million dollars, as compared to net income of over forty-four million dollars generated in the second quarter of 2007, and $4.3 million generated in the comparable third quarter of 2006.
Not only are the revenue and earnings growth impressive, but consider just how profitable these companies are. $22.00 million in profit on sales of one-hundred and thirteen million dollars is impressive enough, but how about profits of forty-six million dollars on sales of one-hundred and fifty-nine million dollars? By any Western standard, this kind of profitability is truly amazing.
When I wrote previously that new fortunes are being made right now in the stock market, it’s pretty clear how this is happening. The momentum for solar energy stocks is so strong that it’s difficult to predict when they might take a break. A correction will happen sometime, but if own any of these stocks right now, you’ve got to be a lot closer to retirement.