Solar industry earnings season begins on Thursday when SunPower (NASDAQ:SPWR) reports results, and if industry data is true the numbers should be outstanding. Solarbuzz is reporting that installations were up 35% from a year ago and Chinese players should see module prices on the rise and margins moving higher.
But rising module prices won't be good for everyone. SolarCity (NASDAQ:SCTY) is a big buyer of solar panels, and if prices rise 20% this year it could hurt retained value.
Solar specialist Travis Hoium covers this and more in his preview of solar earnings in the video below.
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Travis Hoium owns shares of SunPower and SunPower. Travis Hoium has the following options: long January 2015 $5 calls on SunPower, long January 2015 $7 calls on SunPower, long January 2015 $15 calls on SunPower, long January 2015 $25 calls on SunPower, and long January 2015 $40 calls on SunPower. The Motley Fool recommends SolarCity. The Motley Fool owns shares of SolarCity. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.