U.S. President Joe Biden is allegedly preparing to waive tariffs on solar imports from Southeast Asia for two years.
The tariffs will encompass modules from Cambodia, Malaysia, Thailand, and Vietnam, First reported on June 6, by Reuters earlier today.
The process should counteract the ongoing probe into alleged circumvention of anti-dumping and countervailing duties. It is also expected that the White House will confirm and give further details on this development later during the day.
Meanwhile, shares of solar companies have surged in premarket trading due to the recent developments, with the most notable names such as Sun Power (NASDAQ: SPWR) and First Solar (NASDAQ: FSLR) gaining 10.23% and 2.5%, respectively.
Sun Power (NASDAQ: SPWR)
In its most recent earnings report, the company reaffirmed its 2022 guidance of earning $2,000-$2,400 per customer and expecting roughly 73,000-80,000 customers.
Furthermore, revenue was $336.1 million, a 41.3% year-on-year (YoY) increase, while earnings per share (EPS) was $0.02, a miss by $0.01.
At the same time, shares of the company are down over 14% year-to-date (YTD). In more recent sessions, however, the shares jumped over the 20-day and 50-day Simple Moving Average (SMA), looking to close in on the 200-day SMA.
Also, analysts on Wall Street deem the shares a hold, predicting that the average price shares will reach in the next 12 months will be $20.64, which is 12.30%, higher than the current trading price of $18.38.
First Solar (NASDAQ: FSLR)
In their latest earnings report, the company managed to post revenues of $367 million, which is a decrease of 54.3% YoY, missing estimates by $221.73 million.
On the other hand, EPS was -$0.41, which represents a beat of $0.02. Again, the company reiterated its full-year 2022 guidance planning to have revenue between $2.4 to $2.6 billion.
Shares of the company are down over 15% YTD, while more recently, on the daily chart, a double bottom has been noted. This pattern usually predicts a trend reversal, while shares are trading slightly above the 20-day and 50-day SMAs.
Meanwhile, analysts’ consensus on the shares is a hold, predicting that the average price shares will reach in the next 12 months will be $79, which is 5.43%, higher than the current trading price of $74.93.
Despite solar stocks feeling the heat in recent months after the initial “green” push made by almost every political party in the world, some good news has seemingly arrived.
Biden’s decision to waive tariffs may well have a positive impact on these firms’ profitability and may also pique the interest of investors in this sector once again.
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