Can Strong 1Q Results Halt Yingli Green Energy's Tumble?

Yingli Green Energy YGE is scheduled to report first-quarter 2011 results before the markets open tomorrow, May 20. Analysts expect the Chinese company to announce that per-share earnings more than doubled from a year ago to $0.39. But that consensus estimate was $0.46 per share 30 days ago. The revenue forecast calls for $573.5 million, a jump of 59.8% from a year ago. Yingli Green Energy designs, develops, markets, manufactures, sells and installs photovoltaic cells and modules for solar energy systems. Most of its sales come from Europe, primarily from Germany, Italy and Spain. But Yingli opened a new regional headquarters in Singapore in April. Competitors include Suntech Power Holdings STP. Looking ahead, analysts expect similar results in the second quarter: $0.38 per share earnings and revenues up 55.4% year over year. Note though that analysts have underestimated Yingli's per-share earnings in the past three quarters. Yingli has a consensus Buy rating and a mean price target of $13.96 per share. Yet, the share price has been sliding in recent weeks, dropping another 5% after the company lowered near-term shipment and gross margin guidance last week. Shares opened today at $10.25 and were down more than 2% in morning trading.